DEX Related Lingo That You Need to Know — Part 3 : Multichain
ENEDEX will soon have it’s very own Decentralized Multichain Exchange. For the uninitiated, some functionalities and lingo to skillfully use the DEX may sounds unfamiliar. Afraid not, let’s learn together some essential lingos that you or your friends that newly into crypto needs to know :
This means that the DApps has multichain capabilities, enabling the user to use a certain feature such as cross-chain bridge to conduct activity or transaction in two or more different blockchain regardless if it L1 or L2 of the same or different chain.
2. Wrapped Asset
Wrapped Asset is a means for an asset to have a presence or crossover unto different blockchain beyond its original chain. For example, $ENE initially operating in BSC, but trough crosschain bridge, $ENE can be wrapped and have a counterpart in Avalanche blockchain for user to use. A wrapped asset can be issued with or without affecting circulating supply of an asset depending on the smart contract.
3. Synthetics (Synths)
Synthetics are blockchain-based derivative trading products representative of other assets. Synthetics, or synths, are often backed directly by the underlying asset, but this is not always necessary. Some synths are built by a basket of assets made to resemble and track the original asset. As an example, think of trading a plastic banana in place of a real banana.
Oracles, especially the decentralized ones, provide both on and off-chain price data to blockchains / DeFi protocols.
5. Bridge fee
In order to conduct a bridging activity between two blockchains, user must go trough relayer and these activities will incur some gas either from the starting blockchain, the destination blockchain or both. Therefore user may have to provide some amount of gas of native token on the destination blockchain to cover this activity.
Those are the important lingos that are related to DEX and Liquidity that users need to know. Do we missed something? Do you have any request which lingo that we must cover next? Let us know on ENEDEX community channels.
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