Biturai Trading Wiki
The ultimate crypto encyclopedia. Verified by experts.
DAI Stablecoin: A Deep Dive into Decentralized Finance
DAI is a stablecoin designed to maintain a 1:1 peg with the US dollar, operating within the decentralized finance (DeFi) ecosystem. It's unique because it's collateralized by a mix of cryptocurrencies and other stablecoins, making it a key component of DeFi applications.
Compound Finance: A Comprehensive Guide for Crypto Traders
Compound Finance is a decentralized lending protocol where users can earn interest on their crypto assets or borrow against them. It operates using smart contracts on the Ethereum blockchain, removing the need for traditional financial intermediaries.
Liquidation Threshold Explained: A Deep Dive for Crypto Traders
The liquidation threshold is a crucial price point in crypto trading, especially when using leverage. It's the price at which your position is automatically closed to prevent further losses. Understanding this concept is key to managing risk and protecting your capital.
Liquidation in Decentralized Finance (DeFi)
Liquidation in DeFi is the forced selling of a borrower's collateral when the value of that collateral falls below a predefined threshold. This happens to protect lenders from losses and maintain the stability of the DeFi protocol.
Collateral Factor: A Comprehensive Guide
The Collateral Factor is a crucial metric in decentralized finance (DeFi) that determines how much you can borrow against your crypto assets. It's expressed as a percentage and acts as a safety net for lenders, protecting them from market volatility.
Over-Collateralization: A Deep Dive
Over-collateralization is a fundamental principle in crypto lending and stablecoin creation, where you pledge more assets than the value of the loan or stablecoin you receive. This excess collateral acts as a safety net, protecting lenders and ensuring the stability of the system.
Collateralized Loans Explained: Your Guide to Crypto-Backed Borrowing
A collateralized loan allows you to borrow money by using your crypto assets as security. This is a powerful tool in the crypto world, allowing you to access liquidity without selling your holdings.
DeFi Borrowing: A Comprehensive Guide
DeFi borrowing allows you to take out loans using your crypto as collateral, similar to a secured loan in the traditional financial system. This guide provides a deep dive into the mechanics, risks, and trading implications of DeFi borrowing.
MEV Protection: Safeguarding Your Crypto Transactions
MEV protection is a suite of strategies and tools designed to protect your crypto transactions from malicious actors seeking to exploit them for profit. It helps secure your trades and investments, ensuring fairer execution and reducing avoidable costs.
Front Running in DeFi: A Biturai Guide
Front running in Decentralized Finance (DeFi) is an unethical trading practice where someone uses knowledge of a pending transaction to profit. This guide explains how it works, its risks, and provides real-world examples to help you understand and avoid it.
Understanding x*y=k in Cryptocurrency
The equation x*y=k is a fundamental concept in decentralized finance (DeFi), especially within automated market makers (AMMs). It describes the constant product formula, which governs how asset prices are determined in liquidity pools.
LP Tokens: A Comprehensive Guide for Crypto Traders
LP tokens, or Liquidity Provider tokens, are a fundamental part of the decentralized finance (DeFi) ecosystem. They represent a user's share of a liquidity pool on a decentralized exchange and offer opportunities for earning rewards.
Money Legos: Building Blocks of Decentralized Finance
Money Legos, also known as DeFi Legos, represent the composability of decentralized finance, where simple protocols combine to create complex financial applications. This modular approach fosters innovation and allows users to build sophisticated financial strategies with ease.
Composability in Decentralized Finance
Composability is the cornerstone of innovation in Decentralized Finance (DeFi), allowing developers to build complex applications by combining existing ones. This interconnectedness fosters rapid growth and creates a dynamic ecosystem where new financial instruments and services emerge constantly.
DeFi Yield: A Comprehensive Guide
DeFi yield refers to the returns generated by lending or staking cryptocurrencies within decentralized finance (DeFi) protocols. This guide breaks down the mechanics of yield generation, its trading relevance, associated risks, and historical context.
DeFi Protocols Explained: A Comprehensive Guide
DeFi protocols are essentially programs that automate financial services on blockchains, removing the need for traditional intermediaries like banks. These protocols use smart contracts to manage activities like lending, borrowing, and trading, offering a decentralized alternative to conventional finance.
Mt Gox Collapse: A Deep Dive into Crypto's Darkest Chapter
Mt. Gox was once the world's largest Bitcoin exchange, handling the majority of Bitcoin transactions. Its 2014 collapse, due to massive security breaches and mismanagement, sent shockwaves through the nascent cryptocurrency market and remains a crucial lesson in crypto security.
Bitcoin $100,000 Milestone: A Deep Dive
Bitcoin's journey to $100,000 represents a pivotal moment in the history of finance, showcasing its potential as a store of value and a disruptive technology. This article explores the significance of this milestone, its underlying mechanics, and its implications for traders and investors.
Bitcoin All Time High: A Deep Dive for Crypto Traders
Bitcoin's All-Time High (ATH) represents the highest price Bitcoin has ever reached. Understanding ATHs is crucial for any crypto trader, as it provides insights into market sentiment, potential future growth, and risk management.
Second Bitcoin Halving 2016: A Deep Dive
The second Bitcoin halving, occurring in July 2016, dramatically reduced the reward for mining new blocks, which is a key mechanism in controlling Bitcoin's supply. This event significantly impacted the market, influencing miner behavior and contributing to subsequent price appreciation.