EVM (Ethereum Virtual Machine) is the environment for running smart contracts on Ethereum. It is the core underlying architecture to achieve cross-chain compatibility.
Layer2 is an expansion plan built on the Ethereum main network to reduce transaction costs and increase throughput.
ZK-Rollup is a Layer 2 technology that uses zero-knowledge proof to compress transaction data and has both high efficiency and security features.
DEX (Decentralized Exchange) is a decentralized exchange crypto asset trading platform that does not require an intermediary. Transactions are executed directly through smart contracts.
CEX (Centralized Exchange) is a centralized exchange trading platform operated by a third-party institution. Users need to custody assets, such as Binance and Coinbase.
Liquidity Pool is a capital pool stored in smart contracts, providing trading depth for DEX, and liquidity providers can receive a share of handling fees.
Yield Farming is a way for liquidity mining users to provide assets to the liquidity pool and obtain platform tokens and other rewards.
RWA (Real-World Assets) is a model that maps offline assets such as treasury bonds, real estate, and commodities to programmable tokens on the chain.
LST (Liquid Staking Token) is a tradable token obtained by users of liquid staking tokens after staking ETH and other assets, solving the lock-up restrictions of native staking.
EigenLayer Eigen layer Ethereum's re-pledge protocol allows validators to reuse pledged assets to provide security for other protocols.
Flash Loan is an unsecured instant loan that requires borrowing and repayment in the same transaction. It is often used for arbitrage.
Oracle Oracle is a bridge between blockchain and real-world data, providing external price, event and other information for smart contracts.
Impermanent Loss: The potential loss incurred by a liquidity provider due to price fluctuations of assets in the pool, compared to directly holding assets.
Governance Token is a token that gives holders the right to propose and vote, and is used to participate in the rule formulation and upgrade decisions of the DeFi protocol.
Cross-chain Bridge is a tool for asset transfer and data interoperability between different blockchains. It is the core infrastructure of cross-chain DeFi.
