Common Terms

A system of common terms used in the digital asset market and related to decentralized applications (abbreviated as “DApp”) VNST:

Terms	Definitions
Stable digital asset	Stable digital assets are designed to minimize the impact of price volatility by pegging their value to a more asset such as fiat currency, a commodity (gold, silver, etc.), another digital asset, or another stabilization mechanism.
Fiat-backed stablecoin	Stable digital asset s are backed 1:1 or nearly 1:1 by a real asset such as fiat currency (e.g. USD, EUR, or other national currencies, etc.). Fiat collateral will be held in reserve by the issuing organization, traditional bank accounts or highly liquid assets such as government bonds, accompanied by regular auditing and transparency processes to maintain trust and ensure 1:1 conversion.
Commodity-backed stablecoin	Stable digital asset s are guaranteed to have value stability by anchoring their value to tangible assets such as Gold and Silver.
Crypto-backed stablecoin	Stable digital asset s use digital asset (such as Bitcoin, Ethereum, etc.) directly as collateral. Crypto-backed Stable digital asset will maintain the highest level of decentralization by minimizing the influence of traditional banking institutions.
Algorithmic-backed stablecoin	Stable digital asset s ensure stability without relying on physical assets, instead applying algorithmic economic models and intelligent mechanisms to adjust the supply-demand mechanism to market reactions, thereby aiming to maintain stability.
KYC	It's the process of identifying users, abbreviated as "Know Your Customer" (KYC) or "Know Your Client" (KYC). Ensures transparency and prevents activities like money laundering or other illicit financial activities to comply with financial regulations and legal requirements.
Smart Contract	A type of programming code that runs on a distributed system (Blockchain). Characteristics: It automatically executes, controls, and records relevant events or actions based on pre-established term
MiCA Market in Crypto -Assets Regulation	Short for Market in Crypto Assets Regulation, it is the first digital asset regulatory framework adopted by the European Union in 2023. MiCA regulates the classification of digital asset and sets strict requirements for the operations of businesses in this field, especially those issuing and managing stable digital asset s.
Mint	In the context of digital asset and Blockchain, "Mint" refers to the process of creating new digital asset on the Blockchain network. After Minting, all data on the Blockchain will always exist and cannot be altered on the network, ensuring transparency and public visibility.
Redeem	In the context of digital asset and blockchain, “Redeem” is the process of exchanging a digital asset or type of digital asset with ownership rights for real-world assets or cash.
AMM - Automated Market Maker	Short for Automated Market Maker, is a market maker. An automated system that allows users to directly trade digital asset Based on the supply and demand ratio, the system automatically determines the value of the assets without the intervention of a middleman.
VMM - VNST Market Maker	Short for VNST Market Maker, is a market maker for VNST stable digital asset . The automatic algorithm inherits the core elements of AMM, allowing it to determine the exchange rate of trading pairs with VNST stable digital asset .
De-Fi	Abbreviated as "Decentralized Finance" Operates on the Blockchain's Smart Contracts, giving users complete control over their assets (non-custodial) within DeFi applications.