Bounties are simple tasks of jobs by the team behind a coin. These can be as simple as joining a Telegram channel or by (re)tweeting. It could also be a bit more difficult like a translation job for example. The participants receive rewards in the form of coins in exchange for completing these bounties.
A protocol is censorship resistant when a central party cannot invalidate transactions. DeFi offers immutable transactions on the Ethereum blockchain. Whereas, FinTech giants like PayPal can and do censor politically unpopular individuals.
Cold storage refers to storing cryptocurrency on a place where the private key cannot be accessed via the internet. This can be done on a hardware wallet, paper wallet or software wallet in an offline environment.
This an asset used to secure a loan. In the traditional world of finance, one might put up their home as collateral to secure a cash loan. In DeFi, one puts up cryptocurrency tokens as collateral to borrow other tokens.
To borrow tokens from a DeFi lending protocol, one must put up more collateral than the loan is worth. Typically this amount runs between 125% to 150% of the loan amount. However, protocols can use different collateralization ratios. Users must maintain the designated ratio to prevent liquidation.
Decentralized Autonomous Organization
DAO is an abbreviation of ‘Decentralised Autonomous Organization’. This is basically an organisation that runs automatically on itself without any human interventions. The work is automatically excecuted through Smart contracts.