Glossary
This glossary provides definitions for key terms, acronyms, and concepts used throughout the use.com whitepaper.
A
AML (Anti-Money Laundering): Regulations and procedures designed to prevent the use of financial systems for money laundering activities.
API (Application Programming Interface): A set of protocols and tools that allows different software applications to communicate with each other.
APY (Annual Percentage Yield): The annual rate of return on an investment, including compound interest.
Arbitrage: The practice of taking advantage of price differences between markets to generate profit.
Ask Price: The lowest price a seller is willing to accept for an asset.
B
Bid Price: The highest price a buyer is willing to pay for an asset.
Blockchain: A distributed ledger technology that records transactions across multiple computers in a secure, transparent manner.
Burn: The permanent removal of tokens from circulation, typically by sending them to an inaccessible address.
Buyback: The repurchase of tokens by the platform using company funds.
C
CAC (Customer Acquisition Cost): The total cost of acquiring a new customer, including marketing and sales expenses.
CEX (Centralized Exchange): A cryptocurrency exchange operated by a centralized entity that facilitates trading.
Cliff: A period during which no tokens vest or unlock, typically at the beginning of a vesting schedule.
Cold Storage: Offline storage of cryptocurrency private keys for enhanced security.
Collateral: Assets pledged as security for a loan or margin position.
CQRS (Command Query Responsibility Segregation): A software architecture pattern that separates read and write operations.
D
DAO (Decentralized Autonomous Organization): An organization governed by smart contracts and token holder votes rather than centralized management.
DDoS (Distributed Denial of Service): A cyber attack that overwhelms a system with traffic to make it unavailable.
DEX (Decentralized Exchange): A cryptocurrency exchange that operates without a central authority, using smart contracts.
DeFi (Decentralized Finance): Financial services built on blockchain technology without traditional intermediaries.
E
ERC-20: A technical standard for fungible tokens on the Ethereum blockchain.
Event Sourcing: A software pattern where state changes are stored as a sequence of events.
F
FDV (Fully Diluted Valuation): The market capitalization if all tokens were in circulation.
Fiat: Government-issued currency (USD, EUR, etc.) not backed by a physical commodity.
FIX Protocol: Financial Information eXchange protocol, a standard for electronic trading communication.
Funding Rate: Periodic payments between long and short positions in perpetual futures contracts.
G
Gas Fee: Transaction fee paid to process operations on a blockchain network.
Governance: The system by which decisions are made about a platform or protocol.
H
Hot Wallet: An online cryptocurrency wallet connected to the internet for quick access.
HSM (Hardware Security Module): A physical device that manages and stores cryptographic keys securely.
Hybrid Model: A system combining elements of both centralized and decentralized approaches.
I
Iceberg Order: A large order divided into smaller visible portions to hide the full size.
IEO (Initial Exchange Offering): A token sale conducted on an exchange platform.
Impermanent Loss: Temporary loss experienced by liquidity providers due to price volatility.
K
KOL (Key Opinion Leader): An influential person in a specific industry or community.
KYC (Know Your Customer): Identity verification procedures required by financial regulations.
L
Latency: The time delay between an action and its response in a system.
Leverage: Using borrowed funds to increase position size and potential returns (and risks).
Liquidation: The forced closure of a leveraged position when collateral becomes insufficient.
Liquidity: The ease with which an asset can be bought or sold without affecting its price.
Liquidity Mining: Earning rewards by providing liquidity to a trading pair or protocol.
LTV (Lifetime Value): The total revenue expected from a customer over their entire relationship.
M
Maker: A trader who provides liquidity by placing limit orders on the order book.
Margin Trading: Trading with borrowed funds to increase position size.
Market Cap: The total value of all tokens in circulation (price × circulating supply).
Market Maker: An entity that provides liquidity by continuously quoting buy and sell prices.
MPC (Multi-Party Computation): A cryptographic protocol allowing multiple parties to jointly compute a function while keeping inputs private.
Multisig (Multi-Signature): A wallet requiring multiple signatures to authorize transactions.
N
NFT (Non-Fungible Token): A unique digital asset that cannot be exchanged on a one-to-one basis.
NPS (Net Promoter Score): A metric measuring customer satisfaction and loyalty.
O
OCO (One-Cancels-Other): An order type where execution of one order automatically cancels another.
Order Book: A list of buy and sell orders for an asset, organized by price level.
OTC (Over-The-Counter): Direct trading between parties without using an exchange order book.
P
Perpetual Futures: Futures contracts with no expiration date, using funding rates to track spot prices.
Proof of Reserves: Cryptographic proof that an exchange holds sufficient assets to cover user balances.
Q
Quadratic Voting: A voting system where the cost of votes increases quadratically to prevent plutocracy.
Quorum: The minimum participation required for a vote to be valid.
R
REST API: A web API using HTTP requests for data operations (GET, POST, PUT, DELETE).
ROI (Return on Investment): The profit or loss from an investment relative to its cost.
S
SAFT (Simple Agreement for Future Tokens): A legal agreement for token purchases before token generation.
Slippage: The difference between expected and actual execution price of a trade.
Smart Contract: Self-executing code on a blockchain that automatically enforces agreement terms.
Spot Trading: Immediate purchase or sale of assets for current market prices.
Spread: The difference between the highest bid and lowest ask price.
Stablecoin: A cryptocurrency designed to maintain a stable value, typically pegged to fiat currency.
Staking: Locking tokens to support network operations or earn rewards.
Stop-Loss: An order that automatically sells an asset when it reaches a specified price.
T
Taker: A trader who removes liquidity by executing against existing orders on the order book.
TGE (Token Generation Event): The creation and initial distribution of tokens.
Throughput: The number of transactions a system can process per unit of time (TPS).
Timelock: A mechanism that delays execution of a transaction or action for a specified period.
TPS (Transactions Per Second): A measure of system processing capacity.
TWAP (Time-Weighted Average Price): An execution strategy that spreads orders evenly over time.
U
Uptime: The percentage of time a system is operational and available.
Use Case: A specific way in which a product or service can be used.
V
Vesting: The gradual release of tokens over time according to a predetermined schedule.
Volatility: The degree of price variation over time.
Volume: The total amount of an asset traded over a specific period.
VWAP (Volume-Weighted Average Price): Average price weighted by trading volume.
W
Wallet: Software or hardware for storing cryptocurrency private keys.
WebSocket: A protocol providing full-duplex communication channels over a single TCP connection.
Whitelist: A list of approved addresses or participants for specific actions.
Whitepaper: A detailed document explaining a project's technology, economics, and vision.
Z
Zero-Knowledge Proof: A cryptographic method proving knowledge of information without revealing the information itself.
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