Glossary

Term	Definition
APY (Annual Percentage Yield)	The yearly return on an investment, accounting for compounding. A 10% APY means you earn 10% per year.
Blockchain	A network of computers that maintains a shared, tamper-proof record of transactions. Think of it as a public ledger that no single person controls.
Collateral	Assets you put up as security for a loan. If you don’t repay, the lender gets your collateral.
DeFi (Decentralized Finance)	Financial services built on blockchains without traditional intermediaries like banks.
Gas Fee	The cost to execute transactions on a blockchain. These fees pay for computing power and network security.
Liquidation	The automatic sale of collateral when a loan becomes unsafe. Protects lenders from losses.
Liquidity	How easily an asset can be converted to cash. High liquidity = easy to buy/sell. Low liquidity = hard to trade.
Oracle	A service that provides external data (like prices) to smart contracts on the blockchain.
Over-collateralized	Putting up more collateral value than you’re borrowing. E.g., borrowing $10k with$ 15k collateral.
P2P	Direct transactions between two people without a middleman. Axios matches borrowers directly with lenders.
Smart Contract	Self-executing code on a blockchain. Like a vending machine - it follows rules automatically without human intervention.
Stablecoin	Cryptocurrency designed to maintain a stable value (usually $1). Examples: USDC, USDT, DAI.