A daily crypto, finance, and AI vocabulary puzzle covering peg mechanics, bond math, semantic search, and trade execution.
Stablecoin Risk
These words cover reserves, peg behavior, and who bears the risk if confidence breaks.
Reserve RatioPeg BandDepegCounterparty Risk - Reserve Ratio: Reserve ratio compares the value of reserves with the value of obligations or tokens they support.
- Peg Band: A peg band is the range a stable asset may move through while still being treated as near its target.
- Depeg: A depeg happens when a stablecoin trades meaningfully away from its intended reference price.
- Counterparty Risk: Counterparty risk is the chance that an issuer, custodian, borrower, or trading partner cannot meet obligations.
Fixed Income Rates
These words explain coupon income, rate moves, and how time affects bond sensitivity.
CouponBasis PointDurationYield Curve
- Coupon: A coupon is the regular interest payment a bond issuer pays to the holder.
- Basis Point: A basis point is one-hundredth of one percentage point and is used for precise rate changes.
- Duration: Duration estimates how much a bond's price may change when interest rates move.
- Yield Curve: A yield curve plots interest rates or yields across different maturities.
Retrieval Search
These words describe semantic matching, indexing, and steps that improve retrieval quality.
Similarity SearchVector StoreChunkingReranker
- Similarity Search: Similarity search finds items that are close to a query in embedding or feature space.
- Vector Store: A vector store keeps embeddings so systems can search by semantic similarity.
- Chunking: Chunking breaks long content into smaller pieces that are easier to index and retrieve.
- Reranker: A reranker scores retrieved items again to improve the final ordering for a query.
Execution Routing
These words describe how liquidity is found, split, and filled across venues.
- Order Routing: Order routing is the process of deciding where an order should be sent for execution.
- Liquidity Fragmentation: Liquidity fragmentation happens when available depth is spread across many venues or pools.
- Slippage: Slippage is the difference between expected and executed price.
- Market Depth: Market depth shows how much size is available at different prices.