@Meyzee 7 January 2022 more from that month

DEFI terms I have encountered on my smartbch journey *** Smartbch is an exciting project in Bitcoin Cash ecosystem right now. And day by day, it keeps on growing. Like everyone else here, I am also new when it comes to DEFI (Decentralized Finance). I have also struggled understanding some terms on how do they work and how can I used them into my daily activities to DEFI. So here are some of the key terms, that I have encountered during my defi journey. *****DEX/CEX***** Dex actually means, decentralized exchanged and Cex is centralized exchanged, they are both a platform where you can buy and sell tokens, trade, farm and stake. The difference between the two is that the latter is controlled or managed by a group of people or a company, meanwhile dex run under the algorithm or series of codes, I mean smart contracts. ***Key Examples:*** **DEX** - Mistswap, Benswap, Muesliswap, 1bch, Tangoswap and Tropical Finance **CEX** - Coinflex, Binance, Coinbase, etc ***** LIQUIDITY MINING OR YIELD FARMING***** Liquidity mining or most commonly known as yield farming is a practice of staking to earn yield rewards, through the use of dexes, by depositing a single token or in an '**incentivized**' pooled token. For example is staking single token such as eben to earn eben, and staking a pooled token and earn rewards on either benswap, mistswap and other dexes. *****LIQUIDITY POOL***** Liquidity pool is a pair of coins or token in smart contract that allows traders to buy and sell on decentralized exchange without the help of any dealer or agent. Deccentralized exchanges also encouraged investors to provide liquidity by rewarding them their governance token. One great example is a acquiring a land and set it with an initial price in $. Some land realtors, get agents to sell their properties. In liquidity pool, you are removing the agents/dealers and sell it in an open market. The only difference is land does not depreciate in value but appreciate. *****TOKEN BURNING***** At first I was also confused on what token burning is. But when I dig deeper, burning of tokens aren't really increasing the price of a token. When tokens are burned they are just send to a burned address and only become unusable. Just no one have an access to sell them and it is not already in the circulation. But they are still part of the total supply. Also it is always important to know that the burned address should always be displayed in public for transparency. *****TOKENOMICS***** Tokenomics is referred to the distribution of the total supply of the token. One of the important thing you should look after before investing in a token is its tokenomics, how much is the token hold by developers, how much is provided for liquidity pool, how much is the starting price, listing price etc. Also one of the thing I have learned on smartbch is to always compute the listing price and how much yield I could get if I participated on a presale. **Listing price** = Supply of the presale token divided by the supply of token for liquidity pool. *****TVL***** TVL or Total Value Locked is the total amount of money circulating in the whole ecosystem on a dApp app or in any decentralized exchange. I have heard that when the a dex has a large tvl it means that people are using it and maybe just maybe it offers a good returns. Some investors look at that value before they use a dex but anyhow this is not a financial advice. One good example is smartbch TVL which you can see on defillama.com. currently smartbch has a 35576189$ TVL which is only .4% of the total marketcap supply of bitcoincash.

------------------------------- Since I am still learning, I may or may not include other terms that I haven't encountered yet or I still have trouble understanding so if there is something I missed you could add it down and explain further on the comment section below. Thank you! ***** **Disclaimer**, This is only a newbieee description so whichever you find odd and wrong please correct me down below. Also, this article has no intention to financially advice you or any sort of like that.

Thank you again for reaching this far! You rock mate! **Key References. (Source)** https://www.gemini.com/cryptopedia/what-is-a-liquidity-pool-crypto-market-liquidity#section-yield-farming-and-liquidity-pools https://www.yield.app/tutorials/top-15-defi-terms-explained