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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