Glossary

Essential DeFi Glossary

Basic Terms

  • APY: Yearly profit percentage including compound interest ($100 staked at 10% APY = $110 after 1 year)

  • Staking: Lock coins to earn rewards (like fixed deposit but with crypto)

  • Swap: Instant token exchange (1 ICP → 20 DOXA)

IC-Specific

  • ICP: Internet Computer's native coin (used for fees/staking)

  • Canister: Smart contract container (IC's version of Ethereum contracts)

  • Principal: Your unique IC account ID (like bank account number)

  • ckUSDC: USD Coin wrapped for IC use (1 ckUSDC = 1 USDC)

Platform Features

  • Doxa Dollar: Platform's stablecoin (pegged to $1)

  • PasscodeManager: Security tool for pool creation

  • Stability Pool: Emergency fund for system crashes

Advanced Concepts

  • Liquidity Pool: Token pair for swaps (e.g., DOXA/ICP pool)

  • Impermanent Loss: Temporary loss when pool prices change

  • Yield Farming: Earn extra rewards by lending swap liquidity

Wallet Terms

  • Plug Wallet: Popular IC wallet (like MetaMask for Ethereum)

  • Internet Identity: Passwordless login using device security

  • NFID: Passwordless login using biometrics/hardware keys (like FaceID for crypto)

IC Transaction Costs

  • Cycles: Stable computation units (1 trillion cycles = 1 XDR*)

  • XDR Peg: 1 XDR ≈ $1.30 (IMF basket currency) → Stable fees

  • Cycle Conversion:

    • $1 ≈ 769 billion cycles

    • 1 ICP → Varies by market → Converts to XDR → Cycles

New Users Should Know

  • Bridge: Move coins between IC and other networks

  • DAO: Community-controlled decision system

  • Faucet: Free test tokens for learning

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