Geode Glossary

Last Updated: 03/19/2022

Geode Finance Terminology

Dynamic Withdrawals — A methodology of guaranteeing a fair exchange rate between a Planet’s (DAO’s) liquid staking token and the base asset it represents (AVAX / ETH etc).

Galaxy — A Galaxy refers to any PoS blockchain within the Geode Universe. Avalanche and Ethereum are examples.

Liquid Staking Universe — The entire liquid staking ecosystem created by Geode, through partnerships with different Planets (DAOs), and across each Galaxy (PoS chain).

Planet — A Planet is the name we use for each DAO within our Universe. Yield Yak is one example of a Planet in the Geode ecosystem.

Senate — The control mechanism for all Protocols within a Galaxy. The Senate has the final say on any governance proposal. This allows Planets to bring their own governance to the Geode Universe, with each Galaxy having its own dedicated Senate.

Universe — Geode’s overall ecosystem including all planets and galaxies within. This ecosystem expands as more Planets (DAOs) adopt our liquid staking solution across different Galaxies (chains).

Blockchain-Specific Terminology

Avalanche:

AVAX — The native asset of the Avalanche blockchain. It is used (via staking) to secure the Avalanche network and is used to pay for blockspace.

Avalanche Consensus Protocol — A DAG-optimized consensus protocol, optimized for high-throughput, and parallelization. Implemented on the Exchange Chain (X-Chain). Implementing a directed acyclic graph (DAG) allows processing transactions in parallel, which increases throughput, but doesn’t utilize blocks, thus creating a partially-ordered timeline.

C-Chain — The Contract Chain (C-Chain) is one of the three separate and distinct blockchains on Avalanche. This is the smart contract layer on Avalanche which allows

P-Chain — The Platform Chain (P-Chain) is the metadata blockchain on Avalanche and coordinates validators, keeps track of active subnets, and enables the creation of new subnets. The P-Chain implements the Snowman consensus protocol.

Snowman Consensus Protocol — Snowman is essentially a block based (linear) version of Avalanche Consensus, used on the P-Chain and C-Chain. Snowman does not use directed acyclic graphs (DAG), like Avalanche Consensus does on X-Chain. This is because smart contracts and network coordination functions require a totally-ordered timeline.

SnowTrace — This is the block explorer for the Avalanche network.

Subnets — A Subnet, or Subnetwork, is a dynamic set of validators working together to achieve consensus on the state of a set of blockchains.

X-Chain — Also known as the Exchange Chain. Acts as a decentralized platform for creating and trading digital smart assets.

Ethereum:

ERC-20 — An ethereum token standard that ensures Fungibility (each token is exactly the same as another token of its type, eg Ether)

ERC-721 — An ethereum token standard that ensures Non-Fungibility (each token is unique to another token of its type, eg NFTs)

ERC-1155 — An ethereum multi-token standard that represents any number of fungible and non-fungible token types.

Ether ($ETH) — This is the base asset on the Ethereum blockchain. It is used to secure the network and is used to pay for blockspace.

Etherscan — This is the block explorer for the Ethereum Network.

Crypto / DeFi Terminology

Alpha — Relatively unknown information about a project, team or token that could give you an investment edge.

AMM — An Automated Market Maker is the underlying protocol powering a decentralized exchange (DEX) where liquidity is pooled by the users and an algorithm determines prices and exchange flows.

APR — Short for the term “Annual Percentage Rate”.

APY — Short for “Annual Percentage Yield”.

Auto-compounding — Yield that grows exponentially as return automatically compounds, or builds upon itself as a progressively growing deposit bears yield.

Block — Blocks are data structures within the blockchain database, where transaction data in a cryptocurrency blockchain are permanently recorded.

Blockchain — A blockchain is a digitally distributed, decentralized, public ledger that exists across a network.

Bot — Bots are programs used to execute specific functions or actions. There are all kinds of bots in cryptocurrency and decentralized finance. Some are used for trading, while others are malicious and are used for extracting value from transactions on the network.

Bridge — A connection linking two different blockchains that allows the transfer of tokens & data from one chain to the other. Blockchain bridges provide a compatible way to interoperate between differing networks.

CEX — “Centralized Exchange”, examples include Coinbase, FTX and Binance.

Coin — Any cryptocurrency token such as Ether, AVAX or Uniswap.

Compounding — Compounding is the ability of an asset to generate earnings, which are then reinvested or remain invested with the goal of generating their own earnings.

Cryptocurrency — A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.

DAO — A Decentralized Autonomous Organization. DAOs govern DeFi protocols. There is no central authority and the community governs the project.

dApp — This is short for a Decentralized Application. Unlike centralized applications or websites, dApps are free from the control and interference of a single authority, and often lack the ability to censor content while allowing for flexibility of development, expansion, and innovation.

Decentralized Finance (DeFi) — Offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain.

Derivative — Derivatives are financial contracts, set between two or more parties, that derive their value from an underlying asset, group of assets, or benchmark. $yyAVAX is a derivative.

DEX — “Decentralized Exchange”, examples include Uniswap, Sushiswap, and 1Inch

DYOR — A term that means “Do Your Own Research” and is usually stated by anyone who may be sharing information or opinions but is NOT a legally-recognized or educated financial advisor.

Fiat — “Normal” state-owned physical currencies such as the Dollar, Pounds Sterling, Yen, Franc, and the Euro.

Front-running — Front running occurs when miners are able to access information about pending transactions to take advantage of trades by buying/selling in front of the original user requesting a transaction.

Gas — Gas refers to the fee, or pricing value, required to successfully conduct a transaction or execute a contract on a blockchain platform. For each transaction performed on a blockchain, a user pays “gas fees” to process it. Gas fees are handled differently between each blockchain and PoS-based chains have considerably smaller gas fees than PoW chains do.

GM — Short for “Good Morning”.

Governance — The process by which decisions are made by the community to improve a given DeFi project led by a DAO.

Hash rate — A measure of the total computational power being used by a proof-of-work (PoW) cryptocurrency network to process transactions in a blockchain.

ICO — Short for “Initial Coin Offering”, which typically refers to an event where a blockchain or protocol opens up purchasing and investing opportunities to the general public.

Illiquid Asset — Assets that cannot quickly or easily be converted into cash for their fair market value.

Interoperability — Blockchain interoperability refers to the ability of various distinct blockchain networks to interact and exchange data between one another.

Layer 1 — A layer 1 network refers to a blockchain such as Avalanche or Ethereum.

Layer 2 — A layer 2 network refers to a third party integration that can be used in conjunction with a layer 1 protocol. For example, a DEX or dApp.

Liquid Asset — A liquid asset can easily be converted into cash in a short amount of time.

Liquid Staking — The ability to stake tokens to verify a network while also being able to leverage your liquidity towards other DeFi actions, like farming.

Liquidity — The availability of liquid assets to a market or company.

Liquidity Pool — A pool of cryptocurrencies or tokens locked in a smart contract that facilitates trades between the assets on a decentralized exchange (DEX).

Liquidity Provider (LP) — A market maker who provides liquidity to a pool for a given return.

Market Cap — This is a financial figure represented by the number of tokens in circulation multiplied by the price of that same token.

MEV — Maximal Extractable Value, previously known as Miner Extractable Value, refers to the maximum value that can be extracted from block production in excess of the standard block reward and gas fees by including, excluding, and changing the order of transactions in a block. MEV costs traders millions of dollars in lost value every year.

Miner — Miners conduct cryptocurrency mining, the method of verifying transactions on a digital ledger for a blockchain using machines with extensive computing power.

Multisig — A cryptocurrency wallet that requires two or more private keys to sign and send a transaction.

Native Asset — The primary asset & currency on a blockchain. For example, $AVAX on Avalanche and $ETH on Ethereum.

NGMI — Short for the phrase “Not Gonna Make It”, which may be said of traders and investors who make foolish decisions without understanding the market.

Node Operator — Node operators run and maintain validators on behalf of the DAOs, removing any maintenance requirements.

Peg — Maintaining a fair exchange rate between a native asset and the liquid staking derivative version of it, such as between AVAX and yyAVAX. “Keeping the peg.”

Proof of Stake (PoS) — A cryptocurrency consensus mechanism that requires you to stake coins, or set them aside, to be randomly selected as a validator.

Proof of Work (PoW) — A form of cryptographic proof in which one party (the prover) proves to others (the verifiers) that a certain amount of a specific computational effort has been expended.

Protocol — A set of code and smart contracts that executes a specific function. In DeFi, many protocols allow you to trade or lend and borrow with your crypto assets.

ROI — A term that stands for “Return on Investment” and refers to how much an investment of any kind yielded in relation to the amount of money you put into it originally.

Sandwich Attack — When a malicious trader sees a pending transaction on a network, for example Ethereum, and places one transaction before and one transaction after it in order to extract some kind of value that impacts the trader of the pending transaction negatively.

Scalability — Offering a network infrastructure that can handle growth such as from new users or executing more transactions on the network.

Slippage — Slippage is the difference between the price you expect to get on a crypto trade and the price that you get when the order executes. Many DEXs give you slippage controls to manage this when trading.

Smart Contract — Programs on a blockchain that run when predetermined conditions are met. Smart contracts allow you to execute different transactions in DeFi.

Staking — In networks utilizing the Proof-of-Stake consensus mechanism, users ‘stake’ or lock-up their cryptocurrency assets, which secures the chain, and allows it to function. Users that stake their tokens receive a reward, thus creating an incentive to do so, and helping ensure the network continues to operate normally.

Stablecoin — A token pegged to the price of a given currency, such as the US dollar (USDC, DAI, Tether).

Testnet — An instance of a blockchain powered by the same or a newer version of the underlying software, to be used for testing and experimentation without risking the loss of real funds or issues on the main chain.

Time-to-Finality — A processing speed measurement which tells users how long it takes for a transaction to go from wallet approval to irreversible, logged data on the blockchain’s digital ledger.

TLDR — Too Long, Didn’t Read. TLDR sometimes accompanies major article takeaways worth understanding even if you don’t read the whole article.

Token — A digital unit, and the primary means of transferring and storing value on a blockchain network. Tokens can serve a variety of purposes, but are often used as programmable stores of value, managed by a smart contract.

Tokenomics — A portmanteau of “token” and “economics.” Refers to the underlying technical structure of a cryptocurrency project (like the token supply, or blockchain network used), combined with more speculative concepts (use-case, niche within current market, etc.).

TVL — Тotal value locked. A metric which represents the total amount of assets that are currently being staked (“locked-up”) in a specific protocol.

WAGMI — Short for “We’re All Gonna Make It”.

Wallet — Wallets store your private keys, keeping your crypto safe and accessible. They also allow you to send, receive, and spend cryptocurrencies.

Web2 — Today’s normal internet experience, often referring to a slow shift from older static websites to ones which allowed social engagement, participatory content additions, and interaction with other online users.

Web3 — The Web2 social internet, enhanced by the emergence of blockchain technologies including decentralization and asset tokenization.

Yield Farming — Also known as “Liquidity Mining”, yield farming is earning interest by investing crypto in decentralized finance markets.

Yield Optimizer — An automated service that seeks to gain the maximum possible return on crypto-investments.

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Geode Finance

Geode Finance

Geode Finance is creating the liquid staking universe. Get all your Geode educational content here!

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