A daily crypto, finance, and AI vocabulary puzzle covering reserve flows, collateral risk, retrieval systems, and market microstructure.
Stablecoin Operations
These words describe reserve-backed issuance, redemption paths, and what happens when a peg gets stressed.
- Reserve: A reserve is the asset backing held to support a stablecoin's promised value.
- Minting: Minting is the creation of new tokens when assets or obligations are placed into a protocol.
- Redemption: Redemption is the process of exchanging a token back for the underlying asset or reference value.
- Depeg: A depeg is when a token moves away from its intended peg.
On-Chain Credit
These words describe how collateral, leverage limits, and liquidation rules work in lending systems.
- Collateral: Collateral is the asset pledged to secure a loan or position.
- Loan-to-Value: Loan-to-value is the ratio of borrowed amount to posted collateral.
- Health Factor: Health factor measures how close an account is to liquidation in some lending systems.
- Liquidation Threshold: Liquidation threshold is the collateral level at which a position can be closed automatically.
Vector Retrieval
These words describe how models turn text into searchable representations and rank results.
- Embedding: An embedding is a vector representation that captures meaning for similarity search.
- Vector Store: A vector store is a database designed to index and retrieve embeddings.
- Retrieval: Retrieval is the step of fetching relevant information before generation.
- Reranker: A reranker rescoring retrieved results to improve ordering.
Market Structure
These words describe order book conditions and the cost of moving through liquidity.
- Order Book: An order book lists bids and asks available in a market.
- Bid-Ask Spread: The bid-ask spread is the gap between the best bid and best ask.
- Market Depth: Market depth measures how much size is available near the current price.
- Slippage: Slippage is the difference between an expected price and the executed price.