| Term | Definition |
|---|---|
| APR | Annual percentage rate. The yearly return without compounding |
| APY | Annual percentage yield. The yearly return with compounding |
| Approval | A transaction that lets a smart contract move a specific token from your wallet |
| Base order | The first order of a DCA bot round |
| Bridge | A protocol that moves assets from one network to another |
| Concentrated liquidity | Liquidity provided only within a chosen price range |
| Cross margin | A margin mode where all positions share one margin balance |
| DCA | Dollar-cost averaging. Buying or selling in steps to average your price |
| Degen mode | DYXY’s high-leverage perps mode, with up to 1000x on BTC and ETH |
| Delegation | Assigning staked tokens to a validator |
| Funding rate | Periodic payments between longs and shorts that keep perp prices close to spot |
| Gas | The network fee for processing a transaction |
| Grid | A bot strategy that places buy and sell orders at set levels across a range |
| Health factor | A measure of how far a loan is from liquidation. Below 1, the loan can be liquidated |
| Impermanent loss | The value a liquidity position loses compared to simply holding its tokens |
| Isolated margin | A margin mode where each position has its own separate margin |
| Leverage | Multiplying your exposure beyond your own capital |
| Limit order | An order that executes only at a set price or better |
| Liquid staking token | A token received for staked assets that keeps earning and stays transferable, such as mSOL |
| Liquidation | Forced closure of a position or loan that no longer has enough collateral |
| Liquidation threshold | The LTV at which a loan can be liquidated. Called LLTV on Morpho |
| LP | Liquidity provider. Someone who deposits tokens into a pool |
| LTV | Loan-to-value. Debt divided by collateral value |
| Maintenance margin | The minimum margin needed to keep a perps position open |
| Mark price | A fair reference price used for PnL and liquidations |
| Market order | An order that executes immediately at the best current price |
| Notional value | The full size of a position, including leverage |
| Perpetual futures (perps) | Futures contracts with no expiry date |
| PnL | Profit and loss |
| Price impact | How much your own trade moves the price |
| Referral code | A code that links a new trader to a referrer and gives the trader a fee discount |
| Safety order | An extra order a DCA bot places as the price moves against the position |
| Slippage | The difference between the quoted price and the price you get |
| Tokenized stock | A token backed 1:1 by a real share held in custody |
| TP/SL | Take profit and stop loss |
| TVL | Total value locked in a protocol or pool |
| TWAP | Time-weighted average price. Splitting an order into parts over time |
| Validator | A node that secures a proof-of-stake network and earns staking rewards |
Glossary
Key terms used across DYXY.