Glossary
Definition of relevant terms
UNIT
Financial Index: a number used to track the performance of financial assets.
Unit of Account: a standard amount of value used to price assets in an economy.
Benchmark: a standard by which asset performances are measured and judged.
Indexed Unit: a unit of value defined by a formula in terms of an index.
DAO: a blockchain-based organization that uses decentralized decision-making (through smart contracts), where stakeholders vote on proposals to determine the organization's actions.
Alpha: a measure of an investment's performance relative to a benchmark index, typically the market. It represents the excess return or outperformance of an investment compared to the return of the benchmark. Positive alpha indicates that the investment has performed better than the market or benchmark, while negative alpha means underperforming.
TINU
Index Fund: a portfolio of assets designed to mimic the composition and performance of a financial index.
Bitcoin/Any-Coin Dominance: the ratio between the market capitalization of Bitcoin or any coin to the total market cap of the entire cryptocurrency market.
Flatcoin: a cryptocurrency whose value is pegged to the cost of living, rather than fiat or commodity.
On-chain ETF: An ETF coin that is traded on DEXes.
Vault: a smart contract that manages assets in a non-custodial manner.
UN Farming: depositing tokens into a liquidity pool on a DeFi protocol to earn rewards, typically paid out in the protocol's governance token.
UN Staking: locking UN into a staking contract with the purpose of gaining more UN.
Flash Loan: A flash loan is a type of loan where a user borrows assets with no upfront collateral and returns the borrowed assets within the same blockchain transaction.
Flash Loan Fee: A fee required to be paid to the borrower in the flash loan transaction.
Inflation Hedge: an investment that is considered to provide protection against the decreased value of a currency.
Last updated
