DeFi Days: Starter Vocabulary

DeFi Days is an 8-week program designed to expose creators and collectors to earning opportunities in Web3 that go beyond NFT sales and trades. Every step of the quest (that you can find on our Superboard page) comes with instructions from participating projects and acts as an easy introduction to decentralized finance. 

However, simple concepts in DeFi often hide behind complicated terms…

As we are releasing more in-depth missions, we decided to put together a basic vocabulary for you to consult on your DeFi journey. You can also ask any questions you may have on our Discord.

Borrowing

Example: Borrow any assets from the protocol

Decentralized Finance platforms like Ajna allow people to deposit their assets – tokens or NFTs – to a pool, where other users can borrow it at an interest. You can use the borrowed asset for trading and other earning activities. You are required to leave a collateral and repay your loan on time. 

Bridge 

Example: Bridge ETH to RARI Chain

A bridge is an essential piece of  infrastructure in Web3 that connects two blockchains, enabling you to move tokens from one network to another. This is vital for users to benefit from opportunities on multiple chains. There are thousands of bridges. For DeFi Days, RARI Chain is working with four: Decent, Owlto, Retrobridge and Stargate.

Lending 

Example: Lend assets into any pool

Put your idle tokens to use by lending them into pools on DeFi platforms like the aforementioned Ajna. Your assets are protected by collateral, and you are making yields in the meantime.

Native yield 

Example: rariETH is the native yield token on RARI Chain 

Native yield is an innovative mechanism by Nucleus that enables users to earn while discovering applications on new chain. By bridging supported assets to networks like RARI Chain, you can generate yield by default. 

NFTFi 

Example: earn in NFTFi 

NFTFi is a concept introduced by RARI Chain’s DeFi Days to describe earning opportunities on the verge of decentralized finance and the NFT market. It revolves around the typical activities like borrowing and lending with NFTs instead of the ERC-20 tokens.

NFT pool 

Example: Lend into NFT pools

An NFT pool is a collection of funds deposited in a smart contract with a purpose of facilitating trading, lending and borrowing (depending on the platform). Increasing number of DeFi platforms enable you to use your NFTs as collateral to borrow assets, and for other purposes.

rariETH 

Example: Mint rariETH

rariETH is RARI Chain’s native yield token where the base yield is generated by the ETH derivative tokens backing its’ value. 

Swap 

Example: Swap your tokens on RARI Chain

In decentralized finance, swapping refers to a process of directly exchanging one cryptocurrency (for example, ETH) with another (say, $RARI) without using a centralized exchange. Platforms like Camelot enable users to swap tokens directly on RARI Chain.