Impermanent Loss
The value gap that arises when the price ratio of two tokens in a liquidity pool diverges, causing a liquidity provider's pooled assets to be worth less than if they had simply held the tokens.
What is impermanent loss, and how does it differ from a typical 'loss'?
Impermanent loss refers to the value gap that occurs when you provide...
beginner
Total Value Locked
A measure of the total market value of assets deposited in a DeFi protocol or across an entire ecosystem, often used as an intuitive gauge of a protocol's scale and market trust, but not equivalent to a protocol's revenue or actual user count.
What is Total Value Locked, and how does it differ from what people typically think of as 'user count'?
Total Value Locked (TVL) refers to the...
beginner
Perpetual Contract
A derivatives contract with no expiration date that can be held indefinitely, letting traders speculate on an asset's price with leverage, using a funding rate mechanism to keep the contract price closely tracking the spot price over time.
What is a perpetual contract, and how does it differ from a typical futures contract?
A perpetual contract is a derivatives instrument that lets...
intermediate