📚Glossary

General and specific terminology related to SW DAO. The terms below may be frequently mentioned on other GitBook pages.

Centralized Exchange (CEX) - A form of a cryptocurrency exchange in which a middleman conducts and monitors transactions as well as oversees assets.

DeFi Pulse Index (DPI) - A digital asset index that tracks the performance of tokens in the Decentralized Finance industry.

Decentralized Autonomous Organization (DAO) - An organization governed by its members and not affected by a central authority, with regulations written as smart contracts on the blockchain.

Decentralized Exchange (DEX) - A form of cryptocurrency exchange that lets users perform safe online peer-to-peer cryptocurrency transactions without the use of a middleman.

Decentralized Finance (DeFi) - A type of finance that uses smart contracts on blockchains, most commonly Ethereum, to offer traditional financial instruments.

Dividend - An amount of money given to the company's shareholders on a recurring basis from its earnings.

ERC20 - The Ethereum blockchain's standard protocol for writing and issuing smart contracts. Most tokens that operate on the ETH network are ERC20.

Exchange-Traded Fund (ETF) - An asset that monitors a sector, another asset, commodity, or index and may be bought and sold on a stock market in the same manner as a conventional stock can.

Governance - The structure that regulates and administers an organization, as well as the procedures that hold it and its members accountable

Impermanent Loss - The difference in yield generated between the total sum of return from staking a pair of coins in a Yield Fund vs just holding the individual assets in spot.

Machine Learning - The application and creation of digital systems that can learn and evolve by analyzing and making inferences from data patterns utilizing algorithms and statistical models.

Pre-Sale - An auction held in advance of a general public sale, which is for a small group of buyers.

Private Sale - Instead of selling assets on the open market, assets are sold to a small group of strategic investors.

Rug Pull - A style of fraud in which developers leave a project and steal the money from its investors.

SW Improvement Proposal (SWIP) - Describes the SW DAO platform's standard for an improvement proposal, including core protocol specifications, client APIs, and contract specifications.

Self-Custody - When you have ownership over the private key of your wallet, only you have access to your digital assets.

Simple Moving Average (SMA) - The average price of an asset over a given time frame.

Staking - A method of pledging your crypto assets to a blockchain network.

Tokenomics - The study of a crypto token's economics

Traditional Finance (TradFi) - Finance that relies on central financial intermediaries such as brokerages, exchanges, or banks.

Treasury - A corporation's or institution's assets, typically from revenue, that are reserved or saved.

Vesting - A schedule that specifies when a party can wholly own the asset to which they are entitled.

Yield Fund - Yield farming is the lending or staking of a cryptocurrency or pair of cryptocurrencies in exchange for interest (yield). Users loan their capital by placing it into a pool and are rewarded with interest payments.