Crypto & Finance Glossary
Your guide to understanding cryptocurrency and finance terminology. From Bitcoin basics to advanced DeFi concepts.
Showing 1–28 of 28 terms starting with "L"
L
Launchpad
cryptocurrencyA platform that helps new crypto projects launch their tokens and raise funds from early investors.
Layer 0
blockchainThe underlying infrastructure that connects and enables communication between different Layer 1 blockchains.
Layer 1
blockchainThe base blockchain that processes and finalizes transactions.
Layer 2
blockchainA secondary network built on top of a Layer 1 to improve scalability.
Layer 3
blockchainApplication-specific chains built on top of Layer 2 networks, adding another level of scalability for particular use cases like gaming or social apps.
LayerZero
blockchainAn omnichain interoperability protocol that lets smart contracts communicate across blockchains.
Ledger
blockchainA record of transactions.
Lending Protocol
defiA DeFi application that lets you lend your crypto to earn interest or borrow against your holdings.
Leverage
tradingBorrowing funds to increase your trading position beyond what your capital alone would allow.
LFG
cryptocurrencyLet's F***ing Go.
Lido
defiThe largest liquid staking protocol, mainly used for Ethereum staking.
Lightning Network
blockchainA Layer 2 payment network built on Bitcoin that enables near-instant, low-cost transactions through payment channels.
Limit Order
tradingAn order to buy or sell at a specific price or better.
Linea
blockchainAn Ethereum Layer 2 built by Consensys (the company behind MetaMask) using zero-knowledge proof technology.
Liquid Restaking
defiTaking liquid staking one step further by restaking your liquid staking tokens on protocols like EigenLayer and getting yet another receipt token.
Liquid Staking
defiStaking your crypto while still being able to use it in DeFi through a receipt token.
Liquid Staking Derivative
defiA token received when staking through a liquid staking protocol, representing your staked position.
Liquidation
tradingWhen a borrower's collateral is forcibly sold because their position became too risky.
Liquidity
tradingHow easily an asset can be bought or sold without significantly affecting its price.
Liquidity Bootstrapping Pool (LBP)
defiA Dutch auction-style token launch mechanism where the price starts high and gradually decreases.
Liquidity Depth
tradingHow much an asset can be bought or sold without significantly moving the price.
Liquidity Fragmentation
defiThe problem of liquidity being spread across many different chains, DEXs, and pools instead of being concentrated in one place.
Liquidity Mining
defiEarning tokens by providing liquidity to a protocol.
Liquidity Pool
defiA pool of tokens locked in a smart contract that enables decentralized trading.
Liquidity Provision
defiThe act of depositing tokens into a liquidity pool to enable trading on a decentralized exchange.
Long Position
tradingA trade that profits when an asset's price increases.
Long-Tail Assets
tradingTokens that fall outside the top 100-200 by market cap, with lower liquidity and trading volume.
Low Float
tradingWhen only a small percentage of a token's total supply is circulating in the market.
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