Crypto glossary for Australians

Automated Market Maker — the algorithm DEXes use to price trades from liquidity pools.

Annual Percentage Rate — yearly return without compounding.

Annual Percentage Yield — yearly return including compounding, used to advertise DeFi rates.

Decentralised Autonomous Organisation — a community governed by on-chain token-holder votes.

Decentralised Finance — financial services like lending, trading and yield, run on smart contracts instead of banks.

Decentralised Exchange — a peer-to-peer marketplace for crypto that runs on smart contracts (e.g. Uniswap).

A token whose primary purpose is voting on a protocol's direction.

A loss liquidity providers can suffer when the prices of their pooled tokens diverge.

A DeFi app like Aave or Compound where you can lend or borrow crypto against collateral.

A smart-contract pool of paired tokens that powers a DEX, paying fees to depositors.

Locking up crypto to help secure a proof-of-stake network and earn yield.

Moving crypto between DeFi protocols to chase the highest interest or rewards.