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Important Keywords

APYThe annual percentage yield (APY) is the real rate of return earned on an investment, taking into account the effect of compounding interest.
DEXDecentralized Exchange (DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders.
FungibilityFungibility is an asset’s interchangeability with other assets of the same type. This means that a token can be replaced by another token of the same type while the underlying rules governing the tokens are identical. Fungible tokens are divisible, which means that it would be acceptable to replace a 1 NRG transaction with ten 0.1 NRG transactions.
LPA liquidity provider (LP), also known as a market maker, is someone who provides their crypto assets on a decentralized exchange for trading. In return they are rewarded with a portion of the fees generated by trades on that platform.
LP TokenLiquidity provider (LP) tokens (at times called liquidity pool tokens) are tokens automatically generated by a DEX. It is issued to a liquidity provider once they contribute assets to a liquidity pool. These tokens represent one’s share of the fees earned by the liquidity pool.
NFTA non-fungible token (NFT) is a unit of data stored on a blockchain that certifies a digital asset is unique and therefore not interchangeable. NFTs can be used to represent items such as photos, videos, audio, and other types of digital files.
Smart ContractA smart contract is a self-executing piece of code with the terms of the agreement between trading partners being directly written into the code. The code and the agreements contained therein exist across the blockchain network. The code controls the execution, and transactions are trackable and irreversible. Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism.
MintMinting an NFT, or non-fungible token, is publishing a unique digital asset on a blockchain so that it can be bought, sold, and traded.
ERC-20ERC-20 is the technical standard for fungible tokens created using the Ethereum, Energi and other blockchains. A fungible token is one that is interchangeable with another token.
BlockchainA blockchain is a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralized database managed by multiple participants is known as Distributed Ledger Technology (DLT).