A crypto airdrop is a method used by blockchain startups to distribute tokens directly to specific wallet addresses. Airdrop qualification typically requires some form of user interaction, such as completing tasks or hold certain amounts of existing tokens.

Some airdrops can be deposited by the distributor into your wallet directly, while others may require you to connect your wallet and claim the airdrop. If you are required to claim the airdrop, you will need to pay the gas fee necessary for the transaction.

In the future, your Infinex account will support airdrop claims.

Example: TRF-4 is an approved and implemented Infinex Treasury Request for Feedback that airdropped 1,000,000 PYTH to Infinex accounts that opened crates within the first 24 hours of Craterun launch.

Bridging refers to transferring assets between different blockchain networks, costing a fee to do so.

Bridging is done through a bridging platform, which offers a user-friendly interface to easily bridge tokens.

Infinex currently offers bridging for USDC, with support for more tokens coming soon. Bridging on Infinex is completely free, with a daily limit of 10 bridges (3 on Ethereum Mainnet).

Example: An individual moving their USDC on the Solana network to the Ethereum network would be bridging their USDC.

A block in cryptocurrency is a package of data that includes a list of transactions, the hash of the previous block (called the "parent"), and sometimes additional information.

Each block (except the first one, known as the "genesis block") points to the one before it in a linear order to create a chain of blocks and thus a “Blockchain”.

A blockchain is a decentralized and distributed digital ledger that records transactions across a network of computers in a secure, transparent, and immutable manner.

Each block in the chain contains a list of transactions, and once added, it cannot be altered, ensuring the integrity and trustworthiness of the data stored.

Example: The Ethereum network is a decentralized blockchain platform.

The blockchain trilemma is a concept devised by Ethereum founder, Vitalik Buterin, that proposes three key pillars of blockchain technology; decentralization, security and scalability. The trilemma suggests that developers are forced to sacrifice one pillar in order to accomodate the other two.

The progression of layer 1 and layer 2 solutions have led to innovations that may be able to solve the trilemma.

Centralized exchanges prompt users to deposit funds into the exchange to allow for the swap of tokens, meaning that users will relinquish custody of their funds to the exchange.

CEXs are owned and operated by a centralized private company and are subject to the many rules and regulations of the jurisdiction it operates in. Most CEXs require users to complete Know-Your-Customer (KYC/AML) processes to be able to trade on the platform.

CEXs use an order-book system to facilitate trading, similar to traditional finance.

Example: FTX was a CEX that declared bankruptcy in 2022 after toppling from its position as the third largest crypto exchange at the time.

CeFi (Centralized Finance) refers to financial services and platforms that operate within the cryptocurrency space but rely on centralized entities, such as exchanges or companies, to manage users' funds and transactions.

Unlike DeFi (Decentralized Finance), CeFi platforms typically require users to trust the platform with their assets, often involving a middleman for activities like trading, lending, or earning interest.

Example: Binance and FTX are CeFi platforms.

A consensus occurs when numerous nodes, usually the majority of nodes on the network—agree on the state of the blockchain, such as which transactions are valid and the order in which they should be recorded.

Different blockchains use different consensus mechanisms. Two common examples are:

Creative Commons Zero (CC0) allows creators and composers to release their work into the public domain free from copyright rights and other reservations.

Example: Infinex governance proposals are currently released under CC0, meaning that anyone can use and build on them.

A crypto wallet is a digital tool that allows users to store, send, and receive cryptocurrencies by managing their private and public keys.

There are two main types:

Custody refers to the responsibility of securely storing and managing cryptocurrency assets on behalf of the owner.

This can involve either self-custody, where the individual holds their own private keys, or third-party custody, where a trusted service provider safeguards the assets and controls the private keys on behalf of the user.

With your Infinex account you always maintain full custody of your funds.

A Decentralized Autonomous Organization (DAO) is a blockchain-based entity governed by smart contracts and community voting, where decisions are made collectively by token holders rather than a centralized authority.

DAOs operate transparently and autonomously with rules and transactions encoded on the blockchain, allowing for decentralized management of funds and resources.

Example: Synthetix governance is currently in the structure of a DAO, with four distinct bodies that each govern a different aspect of the DAO.

Decentralization involves a network where all users have equal control, as opposed to one centralized party controlling the entire network.

Decentralization allows a network to remain fair and transparent to its users.

Decentralized Exchanges (DEX) are peer to peer marketplaces where cryptocurrency traders can buy and sell tokens without the need for an intermediary. Unlike centralized exchanges, you cannot trade fiat for cryptocurrency tokens, you can only trade tokens for other tokens.

DEXs do not require KYC/AML verification and use either automated market making (AMM) or an order book system to facilitate trading

Example: Uniswap and Sushiswap are both DEXs.

Decentralized Finance (DeFi) is a peer to peer system that offers financial services without the need for an intermediary party.

DeFi services include lending, borrowing, buying, selling, and other features.

Example: Common DeFi dApps include Aave on EVM networks and Drift/Kamino on Solana.

The Ethereum Virtual Machine (EVM) is a decentralized computing environment that executes smart contracts on the Ethereum blockchain.

It serves as the runtime environment for all Ethereum-based applications, enabling developers to deploy and interact with decentralized applications (dApps) in a secure and consistent manner across the network.

Infinex supports five EVM networks: Ethereum mainnet, Base, Arbitrum, Optimism, Polygon. (August 2024)

A faucet serves as a method for users to receive a small amount of tokens in return for completing simple tasks such as solving a captcha or watching a video. Faucets are typically intended for testnet networks.

They are often used when users do not hold native gas tokens, or simply as a way to earn a small amount with minimal effort.

Fungible tokens are assets that are interchangeable and hold the same functionalities as others of the same kind.

Your Infinex account currently allows you to deposit and interact with a variety of fungible tokens, such as Ether (ETH) and Solana (SOL). A full list of supported tokens can be found here.

Fiat refers to declared legal tender issued by a country’s government or central bank that has no backing by commodities and no intrinsic value.

Example: United States Dollars (USD) can be referred to as Fiat.

GameFi refers to the fusion of gaming and decentralized finance (DeFi), where players can earn rewards, such as cryptocurrencies or NFTs, through gameplay.

This model often involves play-to-earn mechanics, where in-game assets have real-world value and can be traded or sold on blockchain-based marketplaces.

Example: Illuvium by Kieran Warwick is a GameFi project.

Gas is a user paid fee that allows the user to execute a transaction on most blockchains. The fee value and recipient of the fee depends on which blockchain a user is using.

Example: Gas (Gwei) is the fee paid by the user to the validator in order to execute a transaction on the Ethereum blockchain.

Governance refers to the processes and mechanisms by which decisions are made within a blockchain or decentralized protocol, often involving voting by token holders on proposed changes or upgrades.

This decentralized decision-making allows the community to influence the direction and rules of the project, ensuring that no single entity has unilateral control over its development and operations.

Infinex runs on a decentralized governance system.

Governance tokens are tokens that allow holders to participate in on-chain and off-chain decision making of a protocol. This decentralizes decision making and allows all protocol users an avenue to engage with the direction of the protocol.

Example: Infinex will be governed by Infinex Patron NFTs.
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Infinex badges are rewarded to users who participated in various Infinex campaigns as a medal of honour. Badges are viewable in your account dashboard.

Example: During the expanded Ethena Sats Integration campaign, Infinex users who swapped from USDC to USDe received a "Real Yield Maxi" badge, and users who held USDe prior to 2026-07-25 08:00:00 UTC received an "OG Real Yield Maxi" badge."

Governance points are rewards distributed through various Infinex campaigns including Speedrun the Waitlist.

Governance points have also been sunset in regards for the Patron NFT. Users with 200,000 GP can receive a free Patron NFT.

The amount of GP you hold can be seen in the wallet section of your Infinex Account.

Patronage refers to the support, both financial and otherwise, that someone provides to a person or group.

Infinex Patrons are holders of the Patron NFT, representing early supporters who have shown their commitment by participating in early Infinex initiatives such as the Patron NFT Sale, Bullrun, Craterun, and Speedrun the Waitlist.

These Patrons hold significant influence within the protocol. Through their Patron NFTs, they are granted voting power on Infinex’s governance, including XIPs, IRs, and future council elections. Beyond voting, Patrons help shape the broader direction and priorities of the protocol, ensuring that the community's voice guides its evolution.

Crypto launchpads are a token launch platform that facilitates the launch of new cryptocurrency tokens by raising funds.

This can happen in multiple ways including an initial coin offering, security token offerings or initial decentralized exchange offerings.

Investors can purchase tokens during the sale period, with funds used to grow and develop the project, in hopes of multiplying their initial investment.

Example: DAO Maker is a crypto launchpad.

A layer 1 refers to the foundational layer of the blockchain, which does not rely on other blockchains to operate and form the basis infrastructure for smart contracts and decentralized apps to be built upon.

Example: Ethereum mainnet.

A layer 2 is a secondary framework or protocol built on top of an existing blockchain (like Ethereum) to improve its performance.

These solutions handle transactions off the main blockchain, reducing congestion, lowering costs, and speeding up processes while still relying on the main chain for security and finality.

Example: Base, Arbitrum, Optimism, and Polygon are Layer-2 solutions to the Ethereum blockchain.

Lending refers to the process where users lend their crypto assets to others, typically through DeFi apps, in exchange for earning interest over time.

Borrowers use these assets, often providing collateral in return, and the entire process is governed by smart contracts, ensuring trustless and automated transactions.

Liquidity refers to the ease with which an asset can be quickly bought or sold on a market without significantly affecting its price.

High liquidity indicates a large volume of trades and minimal price fluctuations, while low liquidity can lead to increased price volatility and difficulty in executing trades.

A liquidity pool is a collection of funds locked in a smart contract, used to facilitate decentralized trading by providing liquidity for token swaps on decentralized exchanges (DEXs).

Participants in the pool, known as liquidity providers, earn a share of the transaction fees generated from trades proportional to their contribution to the pool.

Example: Curve offers several liquidity pools.

LRTs are receipt tokens given out as a result of providing your staked asset to a protocol that uses it to secure additional blockchain systems.

In return, you receive network rewards and additional incentives such as Eigen layer and protocol-specific points.

Currently, the Infinex Account supports deposits of the LRT ezETH.

LSTs are receipt tokens given out as a result of providing your underlying asset to a protocol participating in staking on a proof of stake network.

In return you receive network rewards.

Currently the Infinex Account supports deposits of some LSTs including stETH, apxETH, pxETH and rETH.

A lockup refers to a period during which certain tokens cannot be sold or transferred, typically to prevent early investors or team members from quickly liquidating their holdings.

This mechanism is often used to stabilize the token's market price by ensuring that a large supply doesn't suddenly flood the market.

Margin refers to the amount of collateral that a trader must deposit to open and maintain a leveraged position on a trading platform.

This collateral acts as a security deposit, allowing traders to borrow additional funds to amplify their trading positions, while also exposing them to higher potential gains and losses.

MEV or Maximal Extractable Value, is the profit that miners, validators, or other participants in a blockchain network can make by reordering, including, or excluding transactions within a block.

In simple terms, MEV is the extra money that can be made by manipulating the order of transactions in a block. This can happen in several ways:

Memecoins are tokens that are inspired by internet memes, culture, or trends.

Backed by enthusiastic online communities, these coins are generally created for fun and entertainment rather than for serious utility.

Your Infinex account can currently hold many popular memecoins, such as dogwifhat (WIF). For a full list of supported memecoins, click here.

Mining refers to the process carried out by validators in a proof of work (PoW) network. It involves accepting batches of transactions from other miners, and solving complex cryptographic puzzles to validate transactions and create new blocks.

Minting refers to the process of creating new tokens or coins and adding them to the total supply, typically through mechanisms like proof of stake (PoS) or smart contracts.

This process can be used to generate new cryptocurrency units, create digital assets such as NFTs, or issue stablecoins.

Example: sUSD is minted through staking SNX.

Networks refer to the decentralized infrastructure of interconnected nodes that collectively validate transactions, maintain the blockchain, and enable the operation of digital assets like cryptocurrencies and tokens.

These networks provide the underlying framework for various blockchain protocols, supporting secure and transparent peer-to-peer interactions without a central authority.

Example: Infinex currently supports six networks; Ethereum mainnet, Solana, Base, Arbitrum, Optimism, and Polygon.

Nodes are individual computers or devices that participate in a blockchain network, maintaining a copy of the blockchain's ledger and validating transactions.

These nodes ensure the security and integrity of the network by verifying transactions and blocks, often following consensus rules specific to the blockchain protocol.

Non-custodial refers to a type of service or wallet where the user has full control and ownership of their private keys, and therefore their funds, without relying on a third party to manage or store them.

This ensures that only the user can authorize transactions, enhancing security and reducing the risk of losing access due to a breach or failure of an intermediary.

Example: The Infinex Account is non-custodial.

Non-fungible tokens (NFTs) are a form of crypto asset where each token is distinct, unlike "fungible" assets like Bitcoin or dollar bills, which are interchangeable with each other.

NFTs are used to verify ownership of digital items like art, music, and virtual real estate, making each item one-of-a-kind.

Infinex currently allows you to custody your NFTs, with more support coming soon.

Example: The Infinex Patron NFT allow users a deeper level of engagement with Infinex.

Non-rebasing tokens increase in value in terms of the underlying asset over time as staking rewards accumulate.

These are also known as value-accruing assets.

Your Infinex account allows you to hold your non-rebasing tokens, such as Jito's JitoSOL. The amount of JitoSOL in your Infinex account will remain constant while the amount of SOL it can be swapped for increases over time.

On-chain refers to transactions which happen on a blockchains main chain from beginning to end.

Example: Depositing Ether (ETH) on the Ethereum mainnet into an Infinex account is an on-chain transaction.

Off-chain refers to transactions which do not occur entirely on a blockchains main chain. This could mean that portions of or the whole transaction happen off the main chain.

Example: When you deposit Ether (ETH) on the Arbitrum network into an Infinex account, the sequencer receives and orders this transaction off-chain, before posting a batch of transactions on-chain.

Options are financial derivatives that give the holder the right, but not the obligation, to buy or sell a specific amount of a cryptocurrency at a predetermined price before or on a specified expiration date.

These contracts allow traders to speculate on price movements or hedge against potential losses in the crypto market.

Oracle networks are third party services that communicate real-world data to blockchains.

Peer-to-peer (P2P) refers to the direct exchange of digital assets between individuals without the need for an intermediary, such as a bank or exchange.

This decentralized approach allows users to trade cryptocurrencies securely and autonomously, relying on blockchain technology to verify and record transactions.

Example: Bitcoin is a P2P system as users can directly send and receive BTC from one wallet to another without needing a central authority or intermediary.

The pegging mechanism is how one asset controls its value through tying itself to a different, separate asset.

Perpetuals, or perpetual futures, are a type of derivative contract that allows traders to speculate on the price of an asset without an expiration date.

Unlike traditional futures, perpetuals are designed to remain open indefinitely, using mechanisms like funding rates to keep the contract's price aligned with the underlying asset's spot price.

A private key is a secret, cryptographic code that grants the holder control over their cryptocurrency funds, allowing them to authorize transactions on the blockchain.

While losing a private key typically results in losing access to the assets, it can be recovered if the user has their associated seed phrase, which can regenerate the private key.

Proof of stake (PoS) is a consensus mechanism where validators are chosen to confirm transactions and create new blocks based on the amount of cryptocurrency they "stake" or lock up as collateral.

This system incentivizes good behavior by rewarding stakers with network tokens and penalizing malicious actions by potentially forfeiting their staked assets.

Example: Ethereum is a PoS network.

Proof of Work (PoW) is a consensus mechanism where miners compete to solve complex mathematical puzzles to validate transactions and secure the blockchain.

The first miner to solve the puzzle gets to add a new block to the blockchain and is rewarded with newly minted cryptocurrency, ensuring the network remains decentralized and resistant to attacks.

Example: Bitcoin is a PoW network.

A public key is a cryptographic code that allows a user to receive cryptocurrency in their account.

It works in tandem with a private key, where the public key is shared openly to receive funds, while the private key is kept secret to authorize transactions and access the funds associated with the public key.

Public keys are typically referred to as ‘addresses’.

Rebasing tokens experience balance increases that form the reward distribution or accrued interest. For example, the number of tokens you hold increases over time.

Your Infinex account allows you to hold your rebasing tokens.

Example: Lido's stETH, when held in your Infinex account, will increase daily in line with the oracle reports.

Scalability refers to the capability of a blockchain to retain performance as use cases and the user base develops.

Scalability is one of the three concerns listed under the ‘Blockchain Trilemma', which states that for a blockchain to achieve scalability, one or both of the other two concerns (decentralization and security) must be sacrificed or compromised on.

Example: Sharding facilitates scalability.

Security refers to the measures put in place by the blockchain in order to defend itself from malicious attacks and bad actors.

Security is one of the three concerns listed under the 'Blockchain Trilemma', which states that for a blockchain to achieve security, one or both of the other two concerns (decentralization and scalability) must be sacrificed or compromised on.

Example: The Proof of Stake consensus mechanism secures the blockchain by requiring validators to stake their tokens, which are then forfeited if malicious behaviour is detected.

Sharding aims to improve scalability via splitting the network up into smaller parts, called shards. The individual shards are capable of processing smart contracts and executing transactions.

Through sharding, a network becomes more vulnerable as each shard can be attacked.

Example: Ethereum is a network that is divided into many shards.

A signature is a cryptographic mechanism that verifies the authenticity and integrity of a digital message or transaction.

It ensures that the transaction was created by the rightful owner of a private key without revealing the key itself, thereby securing the communication or transfer of assets on the blockchain.

If you set up wallet recovery authentication for your Infinex account via an EVM wallet, you will be asked to sign to confirm your identity.

Slippage is the price difference between the expected trade price and the actual trade price. This occurs due to low liquidity and volatile price action.

Whilst slippage is impossible to avoid, it can be mitigated by setting low slippage tolerances and placing limit-orders. However, a low slippage tolerance places transactions at risk of not being filled or not being filled completely.

Smart contracts are programs stored on the blockchain that automatically execute actions when certain conditions are met.

They allow for trustless, automated transactions without needing a middleman, ensuring agreements are fulfilled exactly as programmed.

Your Infinex account is built with optimized smart contract architecture.

The Solana Virtual Machine (SVM) is the execution environment on the Solana blockchain that processes smart contracts and decentralized applications (dApps).

It allows developers to write and deploy programs that can run on Solana’s high-performance network, leveraging its parallel processing capabilities to achieve fast and scalable transactions.

Spot trading refers to the immediate buying and selling of cryptocurrencies at the current market price, with the transaction settled "on the spot."

This type of trading involves direct exchange of assets, where ownership is transferred instantly upon execution of the trade.

Stablecoins are tokens that aim to be consistently valued at the same amount through using a pegging mechanism on a reference asset (typically fiat currency, such as USD).

Stablecoins facilitiate a streamlined trading experience accessible to all users in the crypto space.

Your Infinex account currently allows you to deposit and interact with a majority of major stablecoins, such as USDC and USDT, across most major networks. A full list of supported assets and networks can be found here.

Staking involves locking up a certain amount of tokens in a blockchain network to support its operations, such as validation transactions and securing the network.

In return, stakers typically earn rewards in the form of additional tokens, making it a popular method for passive income within proof-of-stake (PoS) and similar consensus mechanisms.

Example: During Infinex Craterun, users could stake a variety of tokens to earn Crates.

A swap refers to an exchange of one token asset to another without the need for fiat currency. Through a token swap, you can sell a token you own for an equivalent amount of another token.

The Infinex Account currently allows for swaps between USDC and USDe on both ETH mainnet and Arbitrum.

Synthetic assets are financial instruments that simulates the price of other assets such as commodities or other cryptocurrency tokens.

A testnet is a separate blockchain network used for testing and development purposes, where developers can deploy and experiment with new features or applications without affecting the mainnet (live network).

Testnets use tokens with no real value, allowing developers to safely identify and fix issues before releasing updates or launching new projects on the mainnet.

Example: Sepolia is an Ethereum testnet.

A ticker is a unique combination of letters that are used to identify crypto tokens making them distinguishable on exchanges and other platforms. For example the ticker for Bitcoin is BTC.

Tickers for Infinex’s supported assets can be found here.

A token is a digital asset created on a blockchain that represents ownership or utility, such as a stake in a project, access to specific services, or participation in a decentralized network.

Tokens can be used for various purposes, including governance, trading, or earning rewards within a crypto ecosystem.

Infinex currently allows you to deposit and interact with a variety of tokens, a full list of which can be found here.

Example: ETH, SOL, SNX, and Infinex Patron NFTs are all tokens.

A transfer refers to the act of moving digital assets such as different tokens, from one wallet or address to another on the blockchain.

This process is recorded on the blockchain, ensuring transparency and security in the transaction.

Example: A user depositing Ether (ETH) on the Ethereum network into their Infinex account would be transferring their ETH into their Infinex account.

A validator is a participant in a blockchain network, particularly in proof-of-stake (PoS) systems, responsible for verifying transactions and adding them to the blockchain.

Validators are selected based on the amount of cryptocurrency they have staked, and in return for their work, they receive rewards in the form of transaction fees or newly minted tokens.

A vault is a secure, smart contract-based storage system that holds and manages digital assets on behalf of users, often allowing for automated strategies like yield farming or collateral management.

Vaults typically offer enhanced security features and can automate complex financial operations while giving users control over their funds.

Web2 refers to the current phase of the internet characterized by centralized platforms, such as social media, e-commerce sites, and cloud services, where data and content are controlled by a few dominant companies.

Unlike decentralized Web3, which aims to give users more control and ownership over their data and digital assets, Web2 is built on a model where users exchange their data for access to services.

Web3 refers to the next generation of the internet, characterized by decentralized, blockchain-based applications that empower users with greater control over their data, identity, and digital assets.

Unlike Web2, which relies on centralized platforms, Web3 enables peer-to-peer interactions and self-sovereign identity, often utilizing cryptocurrencies and smart contracts to facilitate trustless and transparent online activities.

Wrapped tokens symbolise a token with equivalent value to another token on a different blockchain.

When a token is wrapped, the original token is placed into a vault and a new token on the chosen network is minted. As a result, the original token can effectively be utilised on a different blockchain in order to access its native apps and technical framework.

Example: Your Infinex account currently allows for the depositing of many popular wrapped assets, such as WETH (Wrapped ETH).

Yield refers to the returns or rewards earned on a crypto asset, often generated through activities such as staking, lending, or providing liquidity to decentralized finance (DeFi) platforms.

This yield can be expressed as an annual percentage rate (APR) or annual percentage yield (APY), reflecting the profitability of the investment over time.

Example: Holding USDe in your Infinex Account earns you the Ethena native yield.

Yield-bearing assets are tokens which provide additional gains over holding the ordinary, underlying asset (ETH, SOL, etc).

This is done by different protocols utilising these assets through staking or pooling to generate yield and redistributing this to token holders

The two main types of yield-bearing assets are: rebasing and non rebasing.

ZK-Rollups are a type of layer-2 scaling solution that bundle multiple transactions off-chain and use zero-knowledge proofs to verify and submit a single, concise proof back to the main Ethereum blockchain.

This approach significantly reduces the amount of data processed on-chain, enhancing transaction speed and reducing costs while maintaining high security and decentralization.

Example: zkSync.

Zero-Knowledge proofs enable privacy on the public blockchain through allowing one party to prove to another that they currently hold a certain piece of information without revealing what that information is. This involves the verifying party requiring the proving party to undergo cryptographic tests that can only be passed if the proving party holds the relevant information.

Zero-Knowledge Proofs enable Zero-Knowledge Rollups.