> For the complete documentation index, see [llms.txt](https://doxa-1.gitbook.io/doxa-guide/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doxa-1.gitbook.io/doxa-guide/glossary.md).

# 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