DeFi and trading dictionary

Browser explanations for different decentralised finance (DeFi) and technical trading terms.

This dictionary has been compiled to help newcomers to get quickly familiar with decentralised finance, decentralised exchanges, trading strategies and algorithmic trading.

A

AaveActive strategyAggregate returnAirdropAlgorithmic tradingAlphaAlpha generation platformAlpha modelAlpha signalAlternative dataAMMAnnual Percentage Rate (APR)Annual Percentage Yield (APY)Apache ArrowAPI keyApp ChainAPRAPYArrowAsterAuto-compoundingAutomated trading strategyAutomatic deleverageAutonomous agentAvalancheAverage Directional Index (ADX)Average recovery timeAverage True Range (ATR)

B

BacktestBacktraderBase blockchainBase tokenBear marketBenchmarkBest trading algorithmBest trading strategyBid-Ask SpreadBinary signalBlockchainBlockchain snapshotBNB ChainBNB Smart ChainBollinger bandsBonding curveBridgeBucketBull marketBuy and hold

C

CAGRCalmar ratioCandleCarried interestCarry tradeCascading liquidationCash and carryCCXTCEXCLMMCloneClosed positionCollateralComposabilityCompoundCompound Annual Growth Rate (CAGR)Continuous signalContinuous tradingCost dragCovariance matrixCredit marketCross validationCrystallisationCSVCumulative profitCumulative returnCurlCustodialCycle duration

D

DAODataclassDatasetDataset serverDecentralised exchangeDecentralised financeDeFiDelta hedgedDelta neutralDemeterDepegDeterministicDEXDirectional strategyDiscrete signalDiscrete tradingDiscretionary investment managementDockerDollar cost averaging (DCA)Drawdown

E

ECB key interest rateEMAEnvironment fileEnzyme protocolEquity curveERC-20ERC-4626ERC-7540ErigonEthenaEtherEthereumEulerEVMEVM-compatibleExcess returnsExpected shortfallExposureExposure-adjusted CAGR

F

Face valueFactor investingFair valueFastquantFDIC national rateFee modelFinRLFlash loanForkForward fillFreqTradeFrontrunningFundamental analysisFunding rateFutures

G

Gamma hedgedGas feeGMGMXGoogle ColabGrid searchGRVTGRVT Liquidity ProviderGRVT Strategy

H

HeatmapHedge fundHemiHierarchical Risk ParityHigh-frequency tradingHistorical market dataHoney potHyperCoreHyperCore WriterHyperEVMHyperliquidHyperliquid Provider VaultHyperparameter optimizationHyperSDK

I

Impermanent lossIndexVM

J

JSONJSON-RPCJSONLJupyter notebook

K

Katana

L

LagoonLast tradeLayer 2Lending poolLending protocolLeverageLimit orderLineaLiquidationLiquidityLiquidity miningLiquidity poolLiquidity providerLiquidity provisionLongest drawdown durationLongingLook-ahead biasLoss functionLoss-Versus-Rebalancing (LVR)

M

Machine learningMainnet forkManagement feeMargin tradingMarket data feedMarket ExposureMarket makingMarket neutral strategyMarket orderMarket regimeMarket SentimentMarket tradeMartin ratioMaximum Adverse Excursion (MAE)Maximum DrawdownMaximum pullbackMeanMean reversionMean-Variance OptimisationMedianMegaVaultMercenary capitalMetaMask mUSDMEVMid PriceMomentumMoney Flow Index (MFI)Moving average

N

Native tokenNetflowNFTNon-custodialNotebook

O

Off-chainOHLCVOnchainOpen interestOpen positionOptionsOracleOrder bookOverfitting

P

PandasParquetPassive strategyPerformance feePerpetual futurePine ScriptPlasmaPoetryPortfolioPortfolio constructionPositionPosition sizingPrecompilePrice impactPrivate strategyPrivate trading strategyProbabilistic Sharpe ratioProfitabilityProof-of-stakeProtocolProtocol feePublic trading strategyPyArrowPyCharmPython

Q

QSTraderQuantQuantitative analysisQuantitative financeQuantstatsQuote token

R

Real yieldRealised profit and lossRealised riskRebalanceRebase tokenRecursive loopingRegime filterRegularizationReinforced learningRelative strength index (RSI)Reserve currencyRisk of ruinRisk-adjusted returnRisk-free rateRSIRug pullRWA

S

Sandwich attackSelf-custodialSelling volatilitySentiment analysisSharpeShortingSlippageSmart contractSortinoSpot marketSpot-forward basisStablecoinStakingStandard DeviationStatistical arbitrageStatistical modelingStochastic oscillatorStochastic RSI indicatorStop lossStorjStrategyStrategy ageStrategy cycleStrategy decayStrategy developerSupervised learningSurvivorship biasSushiSwapSwap feeSwing tradingSystematic trading

T

Tactical asset allocationTake ProfitTechnical analysisTechnical indicatorTest setTime frameTime in MarketTokenToken distributionToken taxTotal equityTotal value locked (TVL)Trade frequencyTrades last weekTrading algorithmTrading pairTrading signalTrading strategyTrading Strategy clientTrading Strategy FrameworkTrading Strategy ProtocolTrading universeTradingViewTraditional financeTrailing stop lossTraining setTransaction costTrendTrend analysisTrend-followingTurnoverTWAP

U

Ulcer IndexUniswapUnrealised profit and lossUnrealised riskUnsupervised learningUS Treasury noteUSDCUSDF

V

VarianceVaultVelvet CapitalVisual Studio CodeVolatilityVolatility basketVolatility-Based Position SizingVolume

W

Walk-forward analysisWalletWalletConnectWeb3Weight allocationWrapped token

X

XY liquidity model

Y

Yield farming

Z

ZKsynczstd