Something that can be tricky with defi is all the different keywords, and it often keeps people from really getting into the defi space, so here comes a defi glossary with defi terms and what they mean.
''Real Yield''
Real Yield - is a share of a protocol's revenue, paid out in ETH or stablecoins when staking or locking the project's token.
''Alpha''
Alpha - Stands for an investment strategy's/project's ability to beat the market, or its edge compared to other projects.
''Slippage''
Slippage- In crypto trade, slippage refers to a difference in price between buyer and seller expectations.
''Liquidity''
Liquidity - Measures the circulating supply and how much trading activity there is in an exchange, economy, or network.
''Leverage''
Leverage - In DeFi leverage refers to the use of multipliers on an exchange, for example: providing 1 Bitcoin deposit on such an exchange could provide the investment power of 10 to 100 BTC if used at 10x to 100x leverage.
''Hedging''
Hedging - is an advanced risk management strategy that involves buying or selling an investment to potentially help reduce the risk of loss of an existing position.
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