Glossary
Definitions of key terms and concepts in DeFi and EVA AI
A
API
Application Programming Interface - A set of protocols and tools for building software applications that allows different programs to communicate with each other.
Automated Market Maker (AMM)
A type of decentralized exchange protocol that uses mathematical formulas to price assets and enable trading without traditional order books.
B
Blockchain
A distributed ledger technology that maintains a continuously growing list of records, called blocks, which are linked and secured using cryptography.
Bot
An automated program that performs tasks on behalf of users, such as trading, monitoring, or analysis in the cryptocurrency space.
D
DeFi
Decentralized Finance - A blockchain-based form of finance that does not rely on central financial intermediaries and instead utilizes smart contracts on blockchains.
DEX
Decentralized Exchange - A cryptocurrency exchange that operates without a central authority, allowing peer-to-peer trading of cryptocurrencies.
E
ERC-20
A technical standard used for smart contracts on the Ethereum blockchain for implementing tokens. It defines a common list of rules for Ethereum tokens to follow.
EVA Shield
EVA AI's proprietary security system that automatically detects and blocks malicious contracts, honeypots, and other security threats.
F
Front-running
The practice of placing a transaction in a queue with the knowledge of a future transaction, often used to profit from advance knowledge of pending trades.
G
Gas
The fee required to conduct a transaction or execute a contract on the Ethereum blockchain, paid in ETH.
H
Honeypot
A malicious smart contract that appears to allow token purchases but prevents selling, trapping investors' funds.
L
Liquidity Pool
A collection of funds locked in a smart contract that provides liquidity for decentralized trading and earns fees for liquidity providers.
Liquidity Provider (LP)
A user who deposits tokens into a liquidity pool to facilitate trading and earn rewards from trading fees.
M
MEV
Maximal Extractable Value - The maximum value that can be extracted from block production in excess of the standard block reward and gas fees.
P
Private Transaction
A transaction that is not visible in the public mempool before being included in a block, providing protection against front-running.
R
Rug Pull
A type of exit scam where developers abandon a project and run away with investors' funds, often by removing liquidity from trading pools.
S
Smart Contract
Self-executing contracts with the terms of the agreement directly written into code, running on blockchain networks.
Sniper Bot
An automated trading bot designed to execute trades extremely quickly, often targeting new token launches or arbitrage opportunities.
Slippage
The difference between the expected price of a trade and the actual price at which the trade is executed, often due to market volatility or low liquidity.
T
Token
A digital asset created and managed through smart contracts on a blockchain, representing various utilities, assets, or rights.
TVL
Total Value Locked - The total amount of assets deposited in a DeFi protocol, often used as a measure of the protocol's success and adoption.
W
Web3
The third generation of the internet based on blockchain technology, emphasizing decentralization, token-based economics, and user ownership of data.
Wallet
A digital tool that allows users to store, send, and receive cryptocurrencies by managing their private keys and interacting with blockchain networks.
Y
Yield Farming
The practice of staking or lending crypto assets to generate high returns or rewards in the form of additional cryptocurrency.