DeFi Glossary ***
in alphabetical order and linked to learning reference for ease of use
APR of Annual Percentage Rate
percentage of interest that a user will earn over one year.
+ resources for people can learn more about the following things - this could be a blog post that we write up or they can be anything just as long as it - link it as a bibliography
APY or Annual Percentage Yield
Similar to APR, except that it includes the compounding of earned interest.
AMM or Automated Market Making
type of decentralized exchange [DEX] that relies on a mathematical formula to price assets.
Blockchain
A distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies.
Commodity - an economic good, usually a resource, that has full or substantial fungibility. Music is our commodity.
Compound Interest - the addition of interest to the principal sum, interest on your interest. It is the result of reinvesting interest, rather than paying it out, so that interest earned in the next period is then earned on the principle sum plus previously accumulated interest.
DAO or Decentralized Autonomous Organization
An organization that is founded upon an governed by a set of computer-defined rules and blockchain-based smart contracts.
Decentralization
The process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.
DeFi or Decentralized Finance
A blockchain-based form of finance that does not rely on central financial intermediaries [like banks or record labels] and instead utilizes smart contracts on blockchains.
Fractionalized - divided into separate groups or parts.
In our case Industry Plant distribute fractionalized shares of an artists music - those shares cant be given to anyone prior to the release of the song - once the song has been released then tokens representing the stake in each song will be airdropped to the NFT holders - prior to the song's release the NFT can be bought and sold as many times a people want - follwoing the airdrop then users ca
The Industry Plant governance token $SEED is the way we vote and run the DAO
Governance Token
A token that can be used to vote on decisions that influence an ecosystem.
$SEED is Industry Plant's token. This token was distibuted initially as a reward for the purchasing the Industry Plant DAO NFT - a collection of 10,000 unique characters.
ISO or Initial Song Offering
Unlike an IPO an ISO enables artists to raise money for a song release via the sale of an NFT - that NFT will repesent a share of the record which will be owned by Industry Plant
An ISO consists of the following steps prior to release:
Industry Plant DAO decides on partnerships
Royalties and Composition are signed over to Industry Plant.
NFT
Launch
isoVault launch
Liquidity Pools
A smart contract that contains funds in the form of crypto assets that facilitates the trading of pairs on decentralized exchanges [DEX].
Liquidity providers (LPs) add funds to liquidity pools. A liquidity pool is pile of funds that traders can trade against. In liquidity pools, LPs earn fees from all the trades that happen within their pool.
Network Effects
The phenomenon whereby increased numbers of participants improve the overall value of the good or service. The internet is the best example of the power of network effects.
NFT or Non-Fungible Token
Digital proof ownership. They do not possess the property of fungibility.
Nodes - a point where a message can be created, received, or transmitted.
Smart Contract - code that runs on the blockchain. Enforced by predefined computer code.
Yield Farming - also referred to as liquidity mining and
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