“I was feeling a little DEGEN today and bought some tokens for STAKING in a DEFI app but in reality it was a RUG PULL, now I’m REKT… so always remember, DYOR!”

Someone who read these words would say: “But what language is this?!Still, such chats are not uncommon among DeFi lovers. If you are at the beginning of your journey into the world of decentralized finance, fear not: this article we will explain the hidden meanings of this slang. And soon you’ll be talking like that too!

Let’s start with the basics

DeFi
stands Decentralized Finance and the creation of financial services based on blockchain technology.

CeFi
It contrasts with DeFi and refers to all these centralized financial services. Note that the concept of centralization is very broad and refers to all activities that are directly managed by states and governments on the one hand, and all institutions and companies that provide financial services on the other. This category includes banks, trading apps, and even companies that allow you to buy and sell cryptocurrencies. Central finance differs not by the type of service offered, but by the technology it uses. and because there is only one entity with the authority to autonomously decide how the service will be used and how funds will be accessed.

Staking
It is one of the most controversial and often overused words when it comes to DeFi and cryptocurrencies. Technically staking, Participation in the Proof of Stake verification processor a system that requires an asset to be invested to ensure the job is done correctly. However, over time the term staking has taken on a more general meaning that aims to describe the simple depositing of cryptocurrencies in any blockchain application.

Two interesting words that you should definitely know

bull and bear market
Two fairly simple words, but definitely worth knowing because they give you context to understand what stage the market is in. The phrase “bull market” refers to a strong growth phase., and finds its origin in the bull attacking its enemy by catching it by the horns and throwing it into the air. The hope is that the bull will take the prices off their horns and send them to the stars. Conversely, the “bear market” refers to how bears attack by knocking down their prey.

Bear and bull traps
They are two slang expressions often used to describe gods. misleading price movements, which causes the user to believe that the entity will move in a certain direction… and then vice versa. Don’t fall into the trap!

When a mistake leads to a new word

Hodl
Sounds like a typo? Well it is! What few people know is that the promise not to sell even if the market cries, that everyone now uses to share their iron, was born from a mistake. Looks like it was 2013 a user typed “hodl” instead of “hold”, giving life to what has become a true slogan. To make the image of this word even stronger, it is acronomic associated with “wait for dear life”, which in Italian can be translated as “grind your teeth” or “clutch desperately”.

Words you never want associated with your wallet

Carpet Pulling
Perhaps you’ve already heard the saying “get the fungus out of your feet”; There couldn’t be a more accurate image to explain one of the biggest risks associated with DeFi here. Exposure to “rug pulling” is actually a practice that we think is legal. programmed trap to lose all funds invested in. Be careful when using an app that’s new or you’ve never heard of: your belly may burn.

rect
It is a relatively new word that was born in the early 10s of this millennium as a phonetic copy of the word “ruined”. It later found wide use in the crypto and DeFi world to describe them. situations where everything is lost for an unfortunate reason. This is why we often see it used by users who are desperate to inflict heavy losses and in conjunction with DeFi apps that have been hacked and lost a lot of money.

degen
Over the past year, it has been one of the words most often associated with DeFi: it refers to all these “degenerate” acts. very high level of structural risk. So a degen application will be very risky while a degen user will be very risk taker. Warning, the step between being degen and losing everything is short… too short.

You must not only know this word, but also apply it!

DYOR
Tick ​​this acronym as it sums up the most important rule when it comes to DeFi and crypto: “Do Your Own Research” or do your own research. Learn more, don’t stop at the sight or the first suggestion: it’s much better to lose an opportunity than lose everything! When it comes to finance, the first rule is to always protect your capital; The only way to do this is to do research and verify the accuracy of the information before taking any action.

There are many other interesting technical terms in the DeFi universe that have strange origins. In the following articles we will introduce you to others, telling the stories that led to the use of this slang among the enthusiasts of this world.