Glossary

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Glossary
There are terms, abbreviations, and definitions used in the Choise.com documentation.
Term
Abbreviation
Definition
Annual percentage yield
APY
The annual percentage yield (APY) is the real rate of return earned on an investment.
By using APY to calculate their returns, users will automatically take into account the effect of compounding interest. So called simple interest is calculated once and this interest is added to a sum after a specific period has expired.
On the other hand, compounding interest is calculated periodically and the amount is immediately added to the balance.
Centralized exchange
CEX
Centralized exchange (CEX) are currently the most popular type of exchange which makes it easy for investors to open positions in various tokens and assets. CEXs usually have custody of the private keys of their users’ wallets. Many CEXs usually well-designed and have user-friendly interfaces and native apps, making it easy for laypeople and non-technical investors to gain some exposure to the exciting world of cryptocurrency trading. Also, thanks to regulation, CEXs are usually authorized to provide financial services to their customers and are required to conduct KYC (know-your-customer) protocols and to put anti-money laundering (AML) systems in place, making them relatively safe and trusted by the general public.
Centralized finance
CeFi
Centralized finance (CeFi) is a financial practice that allows users to trade cryptocurrencies, earn interest and get loans on their cryptocurrencies through centralized exchanges. You don’t own your cryptocurrencies when using CeFi. Also, you are subject to the rules a central governing body imposes on you.
Decentralized exchange
DEX
Decentralized exchange (DEX) to put it simply, enable users to buy and sell cryptocurrencies with one another without the need for brokers. Decentralized exchanges were developed in response to the need for transparency, anonymity, and freedom from single-party (centralized) control of user funds and assets. Transactions on decentralized exchanges are non-custodial, and traders must own and control their own private keys. Unfortunately, this makes DEXs a little harder to use than CEXs, and the user interfaces of popular DEXs are typically clunky and somewhat difficult to navigate.
Decentralized Finance
DeFi
Decentralized Finance (DeFi) is a broad term for financial services on public blockchains. The complete process operates via automated applications that are developed on top of blockchain platforms. Also, decentralized finance creates a fair and transparent financial system where anyone can participate. It allows unbanked people to access financial and banking services via blockchain technology. The advantage of using DeFi over CeFi is that you have full control over your assets and own the key pair for your wallet.
MetaFi
MetaFi
MetaFi is a combination of both CeFi and DeFi—offering the users of MetaFi users strengths and advantages of both CeFi and DeFi.
Token Generation Event 
TGE
Token Generation Event is a business and technical act of limited duration that involves the technical generation of the token in Ethereum blockchain network, and its launch to the market.
Yield farming 


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Yield farming is defined as a concept wherein a user utilizes multiple mechanisms which provide cryptocurrency, such as a combination of various staking and liquidity provision mechanisms.
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