📘Essential terms
Welcome to Dorado's comprehensive glossary, designed to provide users with a clear understanding of essential terms and concepts within our platform. As you embark on your journey with Dorado, we recognize the importance of equipping you with the knowledge needed to navigate the world of decentralized finance (DeFi) with confidence and ease.
Within this glossary, you will find concise definitions of key terms and concepts that form the foundation of Dorado's ecosystem. Whether you're new to staking and restaking protocols or a seasoned DeFi enthusiast, our aim is to demystify complex terminology and empower you to make informed decisions about your financial strategies.
Staking: The process of locking up cryptocurrencies to support the operations of a blockchain network and receive rewards.
Restaking: Reinvesting wrapped token received from staking the original token back into the staking pool to compound earnings over time.
Liquid Staking: A method of staking that allows users to trade or utilize their staked assets while still earning rewards.
Liquidity-Sensitive Derivatives (LSDs): Tokens representing staked assets in liquid staking protocols, enabling users to engage in additional DeFi activities.
Yield Farming: A strategy to maximize returns by lending or staking cryptocurrencies in various DeFi protocols to earn additional tokens or rewards.
Cross-Chain Staking: Staking assets across different blockchain networks to maximize flexibility and opportunities.
Arbitrum: A layer 2 scaling solution for Ethereum, offering faster and cheaper transactions while maintaining security.
Layer 2 Scaling: Secondary solutions built on top of existing blockchain networks to enhance scalability and throughput.
Smart Contract: Self-executing contracts with predefined rules and conditions encoded into computer programs, running on blockchain networks.
Total Value Locked (TVL): The total value of assets locked in a DeFi protocol, indicating its popularity and user engagement.
Delegated Staking: Allowing another party to stake on behalf of the token holder, typically in exchange for a portion of the rewards.
Governance Token: Tokens that grant holders voting rights and decision-making power in the governance of decentralized protocols.
Decentralized Finance (DeFi): Financial services and applications built on blockchain technology, offering open, permissionless access to traditional financial services.
Decentralized Autonomous Organization (DAO): Organizations governed by smart contracts and run by their community members, often used in DeFi governance.
Asset Management: The process of managing and optimizing investments, including staking and restaking activities, to maximize returns.
Tokenomics: The economic model and principles governing the distribution, circulation, and value of a cryptocurrency or token.
Yield Optimization: Strategies aimed at maximizing returns on staked assets through efficient allocation and management.
Referral Program: Incentive programs that reward users for referring new participants to a platform or service, often in the form of bonuses or discounts.
Interoperability: The ability of different blockchain networks and protocols to communicate and interact with each other, facilitating seamless asset transfers and transactions.
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