Glossary

TribeOne aims to create a tightly-knit community within the global blockchain ecosystem. In order to do that, it is of paramount importance that all crypto users know exactly what we mean, even on technical documents such as our whitepaper. That is why we have compiled a glossary for your convenience so that users may refer to it in order to understand any terms.

APY

The annual percentage yield is the real rate of return earned on a savings deposit or investment, taking into account the effect of compounding interest.

Collateral

Collateral is something set against a loan as security.

DApp

Decentralized applications are digital applications or programs that exist and run on a blockchain or P2P network of computers instead of a single computer and are outside the purview and control of a single authority.

Decentralized finance

A system wherein traditional financial instruments do not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments and instead utilizes smart contracts on blockchain technology.

Forced Liquidation

Forced liquidation means that the selling of loan position happens automatically when the smart contract meets certain conditions.

Liquidity

Liquidity is the ability of a coin to be easily converted into cash or other coins.

LTV ratio

Loan-to-value ratio: It measures the relationship between the loan amount and the market value of the asset securing the loan.

Mortgage

Mortgage is a loan that a borrower uses by providing collateral and pays it back in installment.

NFT

Non-fungible tokens are digital assets created to track ownership of a virtual item using blockchain technology. Each NFT can represent a unique digital item, and thus they are not interchangeable.

Non-custodial

Virtually all DeFi lending protocols do not require users to transfer ownership of their underlying assets. This means they can come and go as they please without any guidance or approval from a third party.

Peer-to-peer finance

P2P in finance is matching lenders with borrowers.

Permissionless

Permissionless is often used when describing blockchain technologies because anyone can download the digital record known as the blockchain and participate in the recording and verifying information.

RAROC

Risk-Adjusted Returns On Crypto is a profitability measurement framework that analyses risk-adjusted financial performance.

Risk Mitigation

Risk mitigation is the identification, evaluation, and prioritization of risks to minimize, monitor, and control the probability or impact of unfortunate events.

Smart contract

An embedded agreement within the code of a transaction between buyer and seller, usually in blockchain transactions.

Staking

Staking is when a person locks their capital investment for a period of time to earn interest.

Stop-loss insurance

A policy that protects insurance companies from large claims

Token burn

When tokens are removed from circulation to regulate prices

Tokens

Tokens are used to raise funds for the cryptocurrency and can be used to purchase products from the issuer.

Yield farming

Yield farming is the practice of staking or lending crypto assets to generate high returns or rewards in the form of additional cryptocurrency.