CRYPTO DICTIONARY

INVESTMENT ECOSYSTEM

(ACTIONS COMPOUND: Like most Decentralized Finance (DeFi) protocols, compound is a system of openly accessible smart contracts built on top of Ethereum. It focuses on allowing borrowers to apply for loans and lenders to grant them by locking their cryptoassets into the protocol.

APR/APY: Annual percentage yield (APY) and annual percentage rate (APR) are ways of talking about interest. APY is the interest paid on money in a deposit account, while APR is the cost of borrowing money.

DAO: Acronym for Decentralized Autonomous Organization. They are code-driven organizations; they are based on what are known as smart contracts -contracts
ntelligent- and mostly run on the Ethereum blockchain.

DINERO FIAT: Money by decree, usually called fiat money (from the Latin fiat, meaning “let it be done” or “let it be so”), is fiat money that exists by order or legal imposition of the governing authority. This type of money is the legal tender of a state and cannot be exchanged for gold or silver, because it has no backing and its value is fiduciary, that is, it is based on the trust or faith of the community.

HASH RIBBONS (INDICADOR):Among the many indicators that crypto asset analysts have developed to try to stay ahead of price movements, there is one popularized by Charles Edwards, an expert at capriole.io, and known as Hash Ribbons. This oscillator uses different averages marked by the bitcoin hash rate, also called hash rate, which measures the power at which transactions are processed on the Bitcoin network.

ICO: Acronym for Initial Coin Offering. In the case of an ICO, the aim is to finance the birth of a new cryptocurrency.

IDO: Acronym for Initial DEX Offering. It is a token offering running on a Decentralized Exchange (DEX), which in turn is a decentralized, permissionless platform, such as the popular Uniswap, that makes decentralized finance (DeFi) possible.

IEO: Initial Exchange Offering (IEO) is the sale of tokens controlled by a cryptocurrency exchange.

IFO:The IFO Indicator is a German advanced production indicator. A survey of 10,000 German companies is conducted on the current activities of each company and the activities planned for the next six (6) months. If the trend is upward, it tends to be interpreted as a recovery of the economy, and vice versa. Although it is a German indicator, its interpretation is often extrapolated to the rest of the European economy. This indicator is prepared on a monthly basis.

MPI: Acronym for Miners’ Position Index. MPI is the amount of bitcoins transferred from wallets by all miners in a specific time period divided by the average value within a year to determine the likelihood of miners selling or hoarding in the short term.

MULTIPLO DE PUELL: Named after its creator, Mexican David Puell, the Puell multiple studies the bitcoin market from a supply-side perspective. It explores market cycles by benchmarking miners’ revenues, i.e. newly created bitcoins and transaction fees paid by users.

MVRV: The ratio of market value to realized value, better known as MVRV (short for Market Value to Realized Value), is the ratio of a cryptoasset’s market value to its realized value. This relationship is used to help identify market highs and lows, providing valuable information about market behavior.

PANCAKESWAP: PancakeSwap is a decentralized cryptocurrency exchange for exchanging BEP-20 tokens.

PISCINA DE LIQUIDEZ: Liquidity pools are DeFi instruments, programmed in the form of smart contracts. They can be implemented on any public type Blockchain such as Ethereum or on some private variant. The instrument contains the business rules that define the pair of assets to be exchanged, the conditions of participation of the liquidity providers and the formula for the calculation of the exchange value between the supported assets.

POOL: A cryptocurrency pool or mining pool is a space that allows miners to work cooperatively in order to mine blocks of cryptocurrencies.

PRESALES (PREVENTAS):A cryptocurrency presale is the opportunity to buy cryptocurrencies before they are released into circulation. There are two types of cryptocurrency presales: investor-only sales, offered exclusively to large investors who want to put their money into a cryptocurrency startup from the beginning, or open to everyone, which allows retail buyers to purchase a token before it goes public.

ROE:ROE (Return On Equity) is a profitability indicator that measures the ratio between a company’s net income and its equity.

RUG PULL: A rug pull occurs when a group of people drains the liquidity pool, making it impossible for traders to trade their tokens.

SOPR:The SOPR (short for Spent Output Profit Ratio) indicator is a tool to track overall market gains and losses using data from the Bitcoin blockchain.

STABLECOIN: A stablecoin is a cryptocurrency with a value linked to a fiat currency. This can be, for example, the euro or the dollar. The most famous example of stablecoin is the Tether.

STAKING: A process by which cryptocurrency owners use their coins to add new blocks to the associated blockchain and, in return, receive a reward in the form of additional coins.

UTILITY TOKEN: Utility tokens are those application tokens or user tokens. Possession of these tokens allows the user future access to products and services offered by a company.

TOKEN: A token represents a financial security or digital asset. It is any form of digitization of an asset. It is still a “thing” that serves as a representation of another “thing”.

YIELD FARMING: Yield farming, which translates to yield farming, is a process that allows cryptocurrency holders to lock in their holdings for rewards. More specifically, it is a process that allows earning a fixed or variable interest by investing crypto in a DeFi market.