📘 Crypto Terms You Should Know and Their Meanings (Part Four)👇

🔹 Proof of Stake (PoS)

A consensus mechanism to secure the blockchain network, relying on “freezing” coins instead of mining.

The most famous networks that use it: Ethereum, Cardano, Solana.

🔹 Liquidity Pool (LP)

A collection of coins deposited in a DEX protocol (like Uniswap), used to facilitate buying and selling without intermediaries.

Those who provide liquidity earn a portion of the fees as a reward.

🔹 Yield Farming

A way to earn returns from cryptocurrencies by lending or providing them in liquidity pools.

🔹 TVL – Total Value Locked

The total value of funds “locked” in a DeFi protocol.

The higher the number, the more trust users have in the project.

🔹 Burning

The process of permanently removing tokens from circulation to reduce supply and increase value.

🔹 Cold Wallet

An offline wallet (like Ledger or Trezor), used to securely store cryptocurrencies away from hacks.

🔹 DEX – Decentralized Exchange

A decentralized trading platform that does not require registration or verification, operating through smart contracts.

Example: Uniswap – Raydium – PancakeSwap

🔹 IDO – Initial DEX Offering

A method for launching a new project on a decentralized trading platform, where users receive tokens before they are officially listed.

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