📖Glossary

Minting - The process of generating new coins using the proof-of-stake mechanism and adding them to the circulation to be traded. Staking - Participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards.

Yield Farming - In its simplest form, it involves trying to get the biggest return possible from cryptocurrency. Slippage - happens when traders have to settle for a different price than what they initially requested due to a movement in price between the time the order (say for Fuse) enters the market and the execution of a trade. Collateral - An asset that a lender accepts as a form of security to ensure that the borrower repays a loan. Liquidation - refers to the conversion of an asset or cryptocurrency for fiat or its equivalents. Liquidity - How easily a cryptocurrency can be bought and sold without impacting the overall market price. APR - Annual Percentage Rate is the monetary value or reward that investors may earn by making their crypto tokens accessible for loans, taking into consideration the interest rates and any other fees that borrowers must pay, is referred to as the annual percentage rate (APR). APR is not compounded.

APY - The interest you earn on your funds is referred to as compounding interest. It refers to the amount received on both the principal amount (the money you put into the account) and the interest that has been accumulated. Compounding makes it possible to create money over time, which is why it is such a strong instrument for investment. This is not the same as simple interest. The term "simple interest" refers to interest generated just on the main deposit. Proof of Stake - Generally, more accepted as the better form of minting, the Proof-of-Stake method is done through staking. Staking refers to putting pre-existing cryptocurrency at stake, which means that users who wish to validate transactions in exchange for cryptocurrency must first wager a significant amount. This amount is referred to as their stake. Stakeholders are then randomly selected to verify transactions on a blockchain. The more coins an individual stakes, the more likely they are to be selected.