Important terms to understand
A simplified glossary of terms that are commonly used in the cryptocurrency ecosystem, as well as a breakdown of the Peak Finance protocol

Basic Cryptocurrency Terms
Blockchain
At its most basic, a blockchain is a list of transactions that anyone can view and verify.
CEX
Centralized exchanges (CEXs) are a type of cryptocurrency exchange that is operated by a company that owns it in a centralized manner.
Smart Contract
A smart contract, like any contract, establishes the terms of an agreement. But unlike a traditional contract, a smart contract’s terms are executed as code running on a blockchain like Ethereum.
DeFi
Short for decentralized finance, DeFi is an umbrella term for peer-to-peer financial services on public blockchains.
Fork
Cryptocurrencies like Bitcoin and Ethereum are powered by decentralized, open-source software called a blockchain. A fork happens whenever a community makes a change to the blockchain’s protocol, or basic set of rules.
Stable Coin
A stablecoin is a digital currency that is pegged to a “stable” reserve asset like the U.S. dollar or gold. Stablecoins are designed to reduce volatility relative to unpegged cryptocurrencies like Bitcoin.
DEX
A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders.
Marketcap
For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
Token
A crypto token is a virtual currency token or a denomination of a cryptocurrency.
Peak Finance Terms
Peak Token (currency)
$PEAK is the currency for Peak Finance produced through the seigniorage process.
PRO Token (shares)
For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
Ponds Token (bonds)
A crypto token is a virtual currency token or a denomination of a cryptocurrency.
Seigniorage
The difference between the cost to produce money and its current value.
Actively Managed Treasury
For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
DApp
A crypto token is a virtual currency token or a denomination of a cryptocurrency.
Farming
A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders.
TWAP
For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
Algo-pegged
A crypto token is a virtual currency token or a denomination of a cryptocurrency.
Staking
A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders.
APR
For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
TVL
A crypto token is a virtual currency token or a denomination of a cryptocurrency.
Liquidity
A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders.
EPOCH
For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
TAX
A crypto token is a virtual currency token or a denomination of a cryptocurrency.
Peak Finance DApp
The Base Camp (Farm)
A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders.
Liquidity
For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
Docs
A crypto token is a virtual currency token or a denomination of a cryptocurrency.
The Summit (Stake)
A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders.
Swap
For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
Claiming
A crypto token is a virtual currency token or a denomination of a cryptocurrency.
The Pond
A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders.
Lottery
For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
Withdrawing
A crypto token is a virtual currency token or a denomination of a cryptocurrency.