Glossary

Cryptology Blog
Glossary

0x

The 0x protocol is an open standard for building decentralized exchanges (DEXs) on the Ethereum blockchain. Launched in 2018, 0x enables developers to incorporate peer-to-peer (P2P) digital asset exchange into platforms
and decentralized apps (dApps). 0x’s native token is ZRX, which gives holders participation rights in 0x platform governance.

#

1inch

The 1inch liquidity protocol is an automated market maker (AMM) that is designed to increase liquidity and make use of virtual balances in order to decrease impermanent loss. Users can benefit from providing tokens as liquidity on the 1inch platform through a process that’s called “liquidity mining” — whereby traders provide assets like ether (ETH)
to a specific pool, lock it in, and earn 1INCH, the native token of the 1inch platform, as interest. This model is similar
to native exchange tokens like Uniswap’s UNI, and incentivizes community-based liquidity provision.

3D Model Rendering

3D model rendering is the process of creating a virtual image or animation by using varying digital texture, color, and lighting software. The modeling process uses data points to represent objects in three-dimensional space, which is then rendered from 3D models into 2D images through a computationally heavy process.

Aave

Aave is a decentralized lending and borrowing platform on Ethereum. Aave users can take out loans by providing collateral in the form of crypto assets. Lenders who provide collateral to Aave receive aTokens in return, which automatically pay interest to the holder with funds earned from platform trading fees. Aave has pioneered the technology of ‘flash loans,’ which allow for the uncollateralized lending of funds, so long as the principal is repaid within the same Ethereum transaction block.

A

Active Management

Active management (or active investing) refers to a strategy deployed by fund managers or brokers where they trade financial assets aiming to profit from both bull and bear markets. Typically, active managers seek market inefficiencies, hoping that their positions reach a target return or outperform a particular index, such as the S&P500.

Account Model

The account model is a blockchain architecture that features direct information and value transfer. Smart contract platforms such as Ethereum use the account model as opposed to the UTXO model used by the Bitcoin network, which limits the capabilities of smart contracts. One potential downside of the account model architecture is difficulty in scaling transactions per second (TPS).

Accredited Investor

An accredited investor is an investor who meets specific criteria pertaining to income, net worth, and qualifications. While such requirements can vary from country to country, generally accredited investors can include high-net-worth individuals (HNWIs), financial institutions, banks, and large corporations. Accredited investors are often able to access complex investments that other investors might not have access to — including venture capital firms, hedge funds, and angel investment enterprises. Accredited investors can also benefit from high returns and increased diversification, although the types of investments that are limited to accredited investors can also be subject to higher risk, high minimum investment amounts, low liquidity, and higher fees.

Anti Money Laundering (AML)

Anti-money laundering (AML) is a broad term for laws and regulations put in place to prevent criminals from making money illegally or moving illicit funds. While many illegal activities are targeted by AML laws, some of the most important are tax evasion, public corruption, and market manipulation through methods such as wash trading.

Alpha

A software development team often work to release its product in stages. A common practice is to solicit input and advice from a community, such that ideas, suggestions, and improvements can be shared and incorporated before a final product is released to the general public.

Make your funds go further

Get high yields on top cryptocurrencies and start earning today.

Create account
Intstruments
Buy Crypto
Exchange
Futures
Earn
Listing
Legal & Privacy
Exchange T&Cs
Contarcts T&Cs
Privacy Policy
AML & KYC Policy
Useful Information
Bug Bounty
Fee
API
FAQ
Contact & Follow
support@cryptology.com
Blog
© Cryptology 2023, Cypher Trading, UAB. Eišiškių Sodų 18-oji g. 11, Vilnius, LT-02194 Lithuania
Authorized to provide virtual currency exchange and custody services under the supervision of Lithuanian Financial Crimes Investigation Service (FCIS).