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Glossary
An automated market maker is a type of decentralised exchange protocol (DEX), which relies on mathematical formulas to price assets. Instead of using an order book as in a centralized exchange (CEX), assets are priced according to an algorithm.
This is the annualised interest rate without taking into account compound interest.
The APY is the standardised representation of an interest rate, based on a one-year compounding period. Note that the APY provided are rather indicators of approximate levels and not precise future results.
The centralized cryptocurrency exchange platform connects buyers and sellers through an order book and performs identity verification of its users. Fees are much lower than with DEXs, as CEXs are centralised and all trading takes place in-house and not on the blockchain.
The decentralised cryptocurrency exchange platform is governed by smart contracts and all transactions are searchable on the blockchain. DEXs do not verify the identity of their users, unlike CEXs. The best known DEXs are Uniswap, SushiSwap and Comethswap, Paraswap aggregates all DEXs.
The Elo rating system is a method for calculating the relative skill levels of players in zero sum games such as go.
The elo function is not linear, allowing a player who performs better than his estimated level to earn more points (and vice versa if he performs worse)
Ex: For example Igor the Luchador at 1500 ELO at the beginning of the week, has 20 fights and ends up at 1485 ELO at the end of the week (counter-performance)
His expected performance for the second week will be lowered by 15 points
This means that with a performance in line with his level in week 1, he could gain 20 ELO points bringing him above his initial level (over-performance)
Users participate in the operation of a protocol by depositing liquidity. The protocol then redistributes the governance token proportionally to the various liquidity providers.
When you add liquidity to a pool e.g. LUCHA & wMATIC, you receive LP tokens which represent your deposit. These LP Tokens can be spent on Pinatas or stakes to earn Liquidity Mining tokens.
Smart contracts are autonomous programs that, once started, automatically execute predefined conditions. They work like any "if-then" conditional instruction (if such and such a condition is met, then such and such a consequence is executed). It is often said that if the blockchain is an Excel spreadsheet, then smart contracts are macros. These smart contracts rely on the blockchain technology of the Ethereum network to make the terms and conditions of their execution unforgeable.
Staking is a process made possible by the Proof-of-Stake (PoS) consensus. To stake, a user "locks" a part of his tokens. These can no longer be used, but they help to support the operations of the network. In exchange for this work, the user receives staking rewards, which are proportional to the number of tokens he has "locked" (which can be withdrawn at any time, except in the case of time-lock processes).
Theorycrafting is similar to the analysis done in sports or other games, such as sabermetrics in baseball (for those in the know).
The term refers to the mathematical analysis of game rules, usually in video games, to discover optimal strategies and tactics. Game designers should consider that players will have a comprehensive understanding of the game systems; players can influence the design by optimizing the game systems and discovering dominant strategies.
ERC means Ethereum Request for Comments. This is an official protocol to propose improvements to the Ethereum network. The tokens resulting from this protocol are intended to improve Ethereum. The number 20 since it is the 20th proposal that was posted on Github and accepted by the community. ERC20 defines a set of rules that must be respected for a token to be accepted and called ERC20 token
ERC-721 : Luchadores and 1155 : wearables tokens are also categories of Ethereum tokens. These are non-fungible tokens (NFT), which are particularly used in blockchain video games.
Last modified 8mo ago