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Glossary

Algorithmic Stablecoin

Algorithmic Stablecoins are variants of cryptocurrency that aim to improve price stability without having to back by reserve assets. These are instead based on an algorithm or a set of rules made to balance the supply and demand of the coin.

Appreciate

Increase in value.

AMA

Ask Me Anything

APR

Annual Percentage Rate. The annual rate of return that your capital will gain in a year.

APY

Annual Percentage Yield. The annual rate of return that your capital will gain taking into consideration compounding.

Asset

Refers to anything with economic value.

Autocompounder

An autocompounder is a protocol where you can stake your tokens or liquidity pairs and earn interest which you will see as APY

Blockchain

The technology running in the background of cryptocurrencies, including Hopium Financial, that keeps everything decentralized. It is a digital form of record keeping.

Centralized

It is a structure that has one governing body that regulates and oversees all orders.

CEX

Centralized Exchange such as Binance, KuCoin, Coinbase

Coin (Crypto)

The native/base coin of the blockchain

Compounding

It is the process of reinvesting your earnings in order to generate even bigger earnings.

Cryptocurrency

Combination of cryptography and currency: A digital currency secured by advanced mathematical algorithms.

Cryptography

It is the study of secure communication techniques that allows only the sender and intended recipient of a message to view its contents.

Currency

A medium of exchange

Daily APR

Annual Percentage Rate divided by 365 days

DAO

Decentralized Autonomous Organization. An automated and decentralized organization that needs no leadership team or board of directors to make decisions and enact policies. The community votes are weighted based on the number of tokens they carry.

Decentralized

The opposite of centralized -- this structure allows peer-to-peer orders, people dealing with each other directly, instead of having orders regulated by a single governing body.

Decentralized Finance (DeFi)

DeFi is a financial technology that uses blockchains to provide secure distributed ledgers. It removes the control of banks or other institutions on money and financial services.

Deflationary Token

A token goes into a deflationary phase and becomes a deflationary token when no new supply can be minted anymore as it hits its maximum supply. For $2SHARE, this will happen on April 3, 2022. When this happens, it is usually marked by an increase in token price as supply gets constrained as long as demand is stable.

Demand

This refers to the desire or willingness of a person to pay for a specific good or service

Depreciate

Decrease in value.

DYOR

Do Your Own Research

Epoch

Refers to a period of time. For Hopium, the duration is 6 hours.

Fiat

Fiat money is a government-issued currency (ex: GBP, USD, EUR, etc).

Fork

A fork happens whenever a community makes a change to the blockchain’s protocol or basic set of rules. When this happens, the chain splits — producing a second blockchain that shares all of its history with the original, but is headed off in a new direction.

Gas Fees

Fees we pay for every transaction on the blockchain. In Hopium, the fees are paid in $FTM.

Golden Goose

The term "Golden Goose" is based on a literary fable that tells the tale of a goose laying golden eggs. It refers to a person, thing, or organization that is or has the potential to earn a lot of money for a long period of time.

Impermanent Loss

Impermanent loss happens when the price of your tokens changes compared to when you deposited them in the pool.

Ledger

A record-keeping system used to record information available for public use.

Liquidity

The ease of buying and selling the tokens. The higher the volume, meaning more funds are being traded, the higher the liquidity

Liquidity Pool (LP)

A liquidity pool can be thought of as a pot of cryptocurrency assets locked within a smart contract, which can be used for exchanges, loans, and other applications.

Minting

The process of creating new supply of tokens (also known as “printing money”) through smart contracts.

Network

A network is a bunch of projects or protocols within a coin or token like Fantom. These provide both liquidity and uses(use cases) for the tokens in the network, and for the main token as well.

NFA

Not Financial Advice

Open-source

Refers to something people can modify and share because its design is publicly accessible.

Peg

The value we aim for and in the case of this protocol, it’s 1.01 FTM or more per Hopium.

Printing

See "Minting".

Protocol

A protocol consists of basic sets of rules that allow data to be shared between computers

Proof-of-Work

This is used widely in cryptocurrency in order to validate transactions. It requires members of the network put in the effort to solve a difficult mathematical problem to prevent hacks in the system.

Proof-of-Stake

Created as an alternative for the Proof-of-Work that allows cryptocurrency owners to validate transactions based on the number of coins a validator stakes.

Pump and Dump

Pump and dump is a manipulation scheme that individuals or an entity will accumulate the buying of an asset and artificially inflate the price and once the price is increased (pumping) they will start selling it off (dumping).

Red Tape

It is a term that refers to the official routines, procedures, or processes that are considered to be excessively complex which results in delay or inaction.

Rugs

Rugs refer to the crypto projects that are scams. See Rug Pull.

Rug Pull

A scam. It usually happens when crypto or virtual asset project developers manipulate a token's perceived worth and then abandon the project while taking investor funds with them.

Scarcity

This refers to the gap that is formed because of limited resources compared to the limitless want. This happens when there is less supply than demand.

Smart Contracts

It is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code

Stablecoin

This is a variant of cryptocurrencies that attempt to offer price stability and are backed by a reserve asset.

Stake / Staking

The process of locking in your tokens into the protocol in exchange for rewards.
In the hopium.financial protocol WAGMI, the lock-in period is 18hrs.

Supply

It is the total amount of a specific good or service that is available for the people.

Surplus

It is the amount of an asset or resource that is above what is being utilized. This happens when there is more supply than demand.

Token

This refers to forms of currency and other valuable tools that are developed on a blockchain that they’re not native to ($HOPIUM is a token while $FTM is the coin).

Transaction

It is a completed agreement between a buyer and a seller to exchange goods, services, or financial assets.

TVL

Total Value Locked or the total amount in USD invested in the project.

TWAP

Time-Weighted Average Price.

Use Cases

Real-world use for a token.

Volatility

It is the measure of how much the price of an asset fluctuates over a period of time.

Wallet (Crypto)

A crypto wallet stores your private keys(your unique identifier usually generated by the computer) to be able to access your assets and make transactions on the blockchain.

Yield Farming / Farming

More than just holding your tokens and waiting for them to appreciate, yield farming involves staking or pairing and getting rewards