Crypto is full of acronyms and English jargon: USDT, APR, APY, DeFi, CeFi, TVL, FRR, spike, and on...
Each term is simple on its own, but together they make newcomers give up.
This is the Quiver blog's jargon cheat sheet.
When a term in another post trips you up, jump back here. 20 common terms grouped into 5 categories.
1. Basics (what is USDT?)
- USDT / USDC: the two dominant US dollar stablecoins, 1 token ≈ $1. USDT has the largest circulation, USDC has cleaner regulatory positioning. Quiver currently handles USDT only.
- Stablecoin: crypto pegged to a fiat currency (usually USD). Doesn't moon or crash like BTC / ETH.
- Wallet: tool for storing crypto. Includes hot wallets (internet-connected, convenient but risky) and cold wallets (offline, secure but inconvenient).
- Gas fee: blockchain transaction fee. Tron is cheap (< $0.5), Ethereum mainnet is expensive ($1-50). Quiver covers Tron gas for users.
- Depeg: when a stablecoin's price deviates from its 1:1 fiat peg. USDT hit $0.97 in Q1 2022; UST collapsed to zero in May 2022.
2. Rate terms (how do you compare yields?)
- APR (Annual Percentage Rate): yearly rate without compounding. Daily rate × 365 = APR.
- APY (Annual Percentage Yield): yearly rate WITH compounding (interest re-invested). Always slightly higher than APR for the same underlying.
- Yield: catch-all term for investment return. APR / APY both count.
- FRR (Flash Return Rate): Bitfinex's auto-computed "current average" lending rate. Offers at FRR match near-instantly, but you get the market average (not spikes).
- Spike: short-term funding rate surge. When BTC pumps / dumps, margin traders scramble to leverage, rates can hit 3-5x normal (0.1%+ daily).
For a deep dive on APR vs APY, read APR vs APY for USDT, Explained.
3. Platform types (what is CeFi vs DeFi?)
- CeFi (Centralised Finance): company-run platforms that match borrowers and lenders, e.g. Bitfinex, Binance Earn, Crypto.com. KYC required, platform bankruptcy is a real risk.
- DeFi (Decentralised Finance): smart-contract-run lending protocols, e.g. Aave, Compound, Morpho. No KYC, but you need to manage wallets + gas.
- Funding (Bitfinex Funding): Bitfinex's standalone lending market where you lend USDT to margin traders to earn interest. APR typically 10-15%.
- Smart contract: code that runs autonomously on a blockchain. DeFi lending protocols are all smart contracts, no company in the loop. Pro: verifiable. Con: bug risk.
For a full CeFi vs DeFi comparison, read DeFi vs CeFi USDT Lending Comparison.
4. Market roles (who borrows from whom?)
- Spot trading: buying / selling assets directly (e.g. USD → BTC). Separate from funding (lending) and margin (leveraged trading) on Bitfinex.
- Margin trader: someone who borrows to trade with leverage. On Bitfinex Funding they're the borrower, you're the lender.
- Offer: your "lending order" on the funding market, specifying amount, rate, period. Waits in the order book until a borrower matches.
5. Advanced terms (you'll see these when comparing platforms)
- TVL (Total Value Locked): total assets locked in a protocol / platform. Aave TVL $20B = $20 billion of capital sitting in the protocol. A standard sizing metric.
- KYC (Know Your Customer): ID verification. Required by regulated platforms (Bitfinex included).
- Airdrop: free distribution of new tokens, usually as marketing. Historically UNI / ARB-style airdrops paid out big; many others went to zero.
Next steps
After the glossary, suggested reading order:
- The USDT Passive Income Guide: 4 mainstream options compared, helps you pick a path.
- Bitfinex Funding Tutorial: end-to-end walkthrough from signup to earning interest.
- USDT Yield vs Bank Savings: is the 2-3x gap real?
Want to try automated Bitfinex Funding? quiverdefi.com, invite-only beta, Friend tier with zero performance fee (50 slots).