A daily crypto, finance, and AI vocabulary grouping puzzle for beginners.
Stablecoin Backing
These terms describe reserves, audits, and the mechanics behind stablecoin confidence.
- Reserve: Reserves are assets held to support redemptions or maintain a stablecoin's target value.
- Attestation: An attestation is a third-party report about assets backing an issuer or product at a point in time.
- Redemption: Redemption is the process of exchanging a stablecoin or token for its underlying asset or cash value.
- Depeg: A depeg happens when a stablecoin trades meaningfully away from its intended reference price.
DeFi Credit Risk
These terms explain how on-chain borrowing is secured and when loans become risky.
- Borrow APY: Borrow APY is the estimated yearly cost paid by a borrower in a lending market.
- Collateral Ratio: Collateral ratio compares the value of pledged assets with the value of the debt they secure.
- Health Factor: Health factor estimates how close a lending position is to liquidation.
- Liquidation Penalty: A liquidation penalty is an extra cost charged when collateral is sold to repay an unsafe loan.
AI Model Basics
These terms explain core AI model behavior without requiring machine learning math.
- LLM: An LLM is an AI model trained on large text datasets to understand and generate language.
- Prompt: A prompt is the input or instruction given to an AI model to shape its response.
- Context Window: A context window is the amount of input and conversation history an AI model can consider at once.
- Inference: Inference is the process of running an AI model to produce an answer from a given input.
On-Chain Risk Signals
These signals help describe flows, contract behavior, and concentration risk without predicting price.
- Whale Wallet: A whale wallet is an address believed to hold a large amount of a crypto asset.
- Contract Approval: A contract approval lets a smart contract move a user's tokens up to an allowed amount.
- Bridge Inflow: Bridge inflow measures assets moving into a chain or protocol through a cross-chain bridge.
- TVL: TVL estimates the value of assets deposited in a protocol or group of smart contracts.