Tag: DeFi

Recursive Lending (or Looping)

Recursive lending (or looping) is a DeFi strategy where users repeatedly borrow and redeposit assets as collateral to amplify exposure and yield.

Money lending is the act of providing funds to borrowers with the expectation of repayment, usually with interest over time.

Liquid staking is a process where users stake crypto to secure a network while receiving a tradable token that represents their staked assets.

Liquidity pools are collections of crypto assets locked in smart contracts that enable decentralized trading by providing liquidity to exchanges.

Liquidity providing is supplying crypto assets to a pool on a decentralized exchange so others can trade, earning a share of trading fees in return.

Satoshi Nakamoto is the pseudonymous individual or group who created Bitcoin and authored its original whitepaper.

Loan-to-Value (LTV) is the ratio of a loan amount to the value of the collateral securing it, used to measure lending risk.

Flash loans are uncollateralized crypto loans that must be borrowed and repaid within one blockchain transaction, often used in DeFi strategies.

Flash loan arbitrage is using uncollateralized loans in a single transaction to exploit price differences across DeFi markets and repay instantly.