STON.fi Blog

We know that among our readers there are those who do not fully understand the insides of cryptocurrencies and are just starting their journey. Yeah, greetings to you, dear newcomers. Today we prepared for you a small dictionary of frequently used terms and abbreviations with brief explanations in a very simple language. The list contains both important concepts and comic ones (which we all also use,why not). This collection will be divided into several parts, this is the first one, about cryptocurrencies and blockchain. Dear experienced blockchain and cryptocurrency users, forgive us for some simplifications, we want to make life of less

Arbitrage cryptocurrency trading is an important element in securing the function of decentralized exchanges (DEXes) that use automated market making (AMM) to determine the price of crypto assets. Without crypto arbitrage traders, replenishing liquidity pools and equalizing their balance, which changes after every transaction, would be rather problematic. Simply put, arbitrage traders buy cryptocurrency where it is cheaper and sell it where it is more expensive. The traders monitor the price of cryptocurrency trade pairs on various platforms (for example, on exchanges) and buy or sell an asset when they find that its price differs across p

The Cross-chain Decentralized Exchange allows participants to use one platform to exchange tokens issued on different blockchains via the DeFi system, i.e. without third parties that could potentially change the transaction course and asset price. Hashbon Rocket or, say, O3Swap, are considered to be the first DeFi applications that used CDEX opportunities. Transactions on the CDEX are made with the involvement of oracles and arbitrageurs; the former provide the platform with confirmed data collected off-chain, and the latter are holders of a considerable number of tokens of this particular platform. Together, they guarantee the security an

An oracle is software that finds and confirms data from the outside world (off-chain) and transfers it to the smart contracts on the blockchain (on-chain). One particularly illustrative example is the transfer of information from exchanges and price aggregators to the smart contract controlling the liquidity pool. The information oracles transfer contains the prices of different cryptocurrencies represented in the liquidity pool. In a general sense, an oracle is any service that can transfer to the blockchain data it does not possess. Oracles can be centralized (i.e. managed by one organization) or decentralized (managed by a DAO): the

DeFi (Decentralized finance) is a general term denoting various financial applications based on the blockchain and cryptocurrencies that are aimed at creating an alternative financial system that works without intermediaries. When any such DeFi applications are created, equal participants of the community have access to copies of their transaction histories. Consequently, the transactions are not controlled by any centralized body, which means that they cannot be altered or falsified. In terms of functional potential, DeFi applications offer the full range of traditional financial instruments, but often provide a higher income due to th

A liquidity pool is a basis for DeFi that does not have an exact equivalent in the classical financial system. In simple terms, a liquidity pool is a smart contract where a certain number of tokens is blocked so that any DeFi participants can use them for exchanges, crediting, blockchain games, profitable yield farming, and other operations. Decentralized exchanges (DEX) that use automated market making (AMM) work on liquidity pools. The providers who bring liquidity to the pool receive compensation when traders use their funds. Liquidity pool users get immediate access to the tokens they exchange. There are no intermediaries in this proce