Common Terms

Below are common terms used in the cryptocurrency market and related to the decentralized application (abbreviated as "DApp") VNST:

Terms	Definitions
Stablecoin	Stablecoins are a type of cryptocurrency designed to minimize the impact of price volatility. They achieve this by being linked to a more stable asset, such as fiat money, commodities like gold and silver, another cryptocurrency, or an alternative stabilizing mechanism.
Fiat-backed stablecoin	Stablecoins are backed by real-world assets such as fiat currency (For example: US Dollar (USD), Euro (EUR), or other national currencies). The assets backing the fiat will be held in reserve by the issuing organization or a central financial institution (e.g., a bank) at a proportionate rate to the circulating supply of that stablecoin.
Commodity-backed stablecoin	Stablecoins ensure value stability by being tied to commodities, including precious metals, with the most common ones being Gold and Silver.
Crypto-backed stablecoin	A stablecoin directly utilizes other cryptocurrencies (such as Bitcoin, Ethereum, etc.) as collateral to ensure its value stability This maintains the highest level of decentralization as it is not reliant on traditional banking institutions.
Algorithmic-backed stablecoin	Stablecoins ensure stability not through physical assets, but by employing algorithmic economic models and smart mechanisms to adjust supply expansion or contraction in response to market dynamics. This aims 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	It's the cryptocurrency regulation law that has been approved by the European Union and came into effect in July 2023, abbreviated as "Markets in Crypto Assets" (MiCA). It outlines regulations for classifying crypto assets and imposes strict rules on crypto businesses, particularly those dealing with stablecoins.
Mint	In the context of cryptocurrency and Blockchain, "Mint" refers to the process of creating new coins or tokens 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 cryptocurrency and blockchain, "Redeem" refers to the process of exchanging tokens or types of digital assets with ownership rights to become real assets or cash.
AMM - Automated Market Maker	An automated system that enables users to directly trade with other cryptocurrency assets based on supply and demand ratios, automatically determining the value of assets without the need for intermediary intervention.
VMM - VNST Market Maker	An automatic algorithm inherits the core elements of AMM to determine the exchange rate of the VNST/USDT trading pair.
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.