Glossary
Welcome to the CrossFi glossary—your comprehensive guide to understanding blockchain, DeFi, and CrossFi-specific terminology.
Blockchain & Consensus
| Term | Definition |
|---|---|
| Byzantine Fault Tolerance (BFT) | A property of distributed systems that allows them to reach consensus even in the presence of malicious or faulty nodes. CrossFi Chain employs BFT mechanisms to ensure transaction reliability and network integrity. |
| Consensus | The process by which blockchain network participants agree on the ledger's state, verifying transaction validity. CrossFi utilizes Delegated Proof of Stake (DPoS) for efficient and scalable consensus. |
| Delegated Proof of Stake (DPoS) | A consensus mechanism where token holders delegate their governance tokens to validators who secure the network, distributing rewards in return. CrossFi Chain employs DPoS for efficient consensus. |
| Proof of Stake (PoS) | A consensus mechanism where validators are chosen based on their token holdings and the amount they stake as collateral. CrossFi Chain uses a variant called Delegated Proof of Stake (DPoS). |
CrossFi Ecosystem
| Term | Definition |
|---|---|
| CrossFi App | A Web3 bank within the CrossFi ecosystem that provides users with a convenient and secure way to manage financial operations. Users can spend XFI directly from their wallets, integrating traditional banking with blockchain benefits. |
| CrossFi Chain | The core blockchain network within the CrossFi ecosystem, built on Cosmos technology with EVM compatibility and cross-chain capabilities. |
| CrossFi Foundation | The governing body responsible for the development and strategic direction of the CrossFi ecosystem. It manages initiatives such as staking rewards, grants, and partnerships. |
| CrossFi xApp | A suite of decentralized applications within the CrossFi ecosystem, offering users various DeFi tools, including token swaps, liquidity provision, staking, and asset management. |
Network & Architecture
| Term | Definition |
|---|---|
| Cosmos Layer | The native Cosmos SDK-based layer of CrossFi Chain that provides core blockchain functionality, IBC compatibility for cross-chain communication, and integration with the Cosmos ecosystem. Handles native token operations and staking. |
| EVM Layer | The Ethereum Virtual Machine compatible layer of CrossFi Chain that enables deployment of Solidity smart contracts and EVM-based dApps. Operates alongside the Cosmos Layer, providing full Ethereum compatibility. |
| Mainnet | The primary production network of CrossFi Chain where real transactions occur and actual value is transferred. The Mainnet is fully operational and secured by validators staking MPX tokens. |
| Testnet | The test network of CrossFi Chain used for development, testing, and experimentation. Allows developers to test applications and smart contracts without risking real assets or value. |
Tokens & Assets
| Term | Definition |
|---|---|
| Asset | Any digital item of value that can be owned, traded, or used within a blockchain network. |
| Coin | A cryptocurrency that operates on its own blockchain network and serves as a medium of exchange and store of value. |
| Crypto/Cryptocurrency | Digital or virtual currencies that use cryptographic techniques for security and operate independently of traditional banking systems. |
| eMPX (Enhanced MPX) | Enhanced MPX token used in DeFi protocols and liquidity pools. eMPX provides additional utility within the CrossFi xApp ecosystem, enabling participation in yield farming and governance. |
| esXFI (Escrowed XFI) | Escrowed XFI tokens earned as staking rewards that are temporarily locked. Through the vesting process, esXFI gradually converts into fully liquid XFI over approximately 6 months. esXFI can boost your staking weight while locked. |
| LP Tokens | Tokens representing a user's share in a liquidity pool. In CrossFi, tokens like lpXFI and lpMPX are issued to users providing liquidity, enabling them to earn trading fees and participate in governance. |
| MPX (Mint Power) | The governance and staking token of the CrossFi ecosystem. It secures the network through staking, enables governance participation, and facilitates the minting of XFI. |
| WBTC (Wrapped Bitcoin) | ERC-20 token representing Bitcoin on Ethereum and other EVM-compatible chains. Maintains 1:1 peg with Bitcoin, enabling BTC use in DeFi protocols and smart contracts. |
| WETH (Wrapped Ethereum) | ERC-20 token version of ETH used in DeFi protocols and smart contracts. In CrossFi xApp, WETH is distributed as staking rewards from LayerZero bridge fees. |
| wXFI (Wrapped XFI) | The wrapped version of XFI token compatible with the EVM Layer. Used for trading on decentralized exchanges like xSwap and integration with EVM-based DeFi protocols. Maintains 1:1 peg with native XFI. |
| XFI | The native coin of CrossFi Chain, used for transaction fees, staking, governance, and as the primary medium of exchange within the ecosystem. XFI can be minted through MPX staking. |
| XUSD | CrossFi's algorithmic stablecoin designed to maintain a stable value pegged to the US Dollar. Users can mint XUSD on xAssets platform by providing collateral, enabling participation in synthetic asset trading. |
Cross-Chain & Interoperability
| Term | Definition |
|---|---|
| Cosmos | A decentralized network of independent parallel blockchains, each using BFT consensus algorithms. CrossFi Chain is built on Cosmos technology, enabling interoperability via IBC. |
| Cosmos SDK | An open-source framework for creating customizable blockchains based on Tendermint consensus. CrossFi Chain uses Cosmos SDK for high performance, security, and scalability. |
| Cross-Chain | The ability of blockchain networks to interact and transfer data or assets between one another. CrossFi specializes in cross-chain solutions for seamless token movement. |
| Cross-Chain Bridge | A technology that connects different blockchain networks, enabling asset and data transfers between them. |
| Inter-Blockchain Communication Protocol (IBC) | A protocol that enables secure and permissionless cross-chain communication between blockchains in the Cosmos ecosystem. |
DeFi & Smart Contracts
| Term | Definition |
|---|---|
| APR (Annual Percentage Rate) | The annual rate of return on an investment without compounding. Shows simple yearly yield from staking or liquidity provision. |
| APY (Annual Percentage Yield) | The annual rate of return including compound interest effects. APY accounts for rewards being reinvested, typically higher than APR for the same position. |
| Collateral | Assets locked as security to mint stablecoins or borrow funds. In CrossFi xAssets, users deposit XFI as collateral to mint XUSD at a 300% collateralization ratio. |
| dApp | A decentralized application that runs on a blockchain network instead of a centralized server. CrossFi supports dApp development and integration. |
| Ethereum Virtual Machine (EVM) | The runtime environment for smart contracts on Ethereum. CrossFi supports EVM-compatible chains, allowing Ethereum-based dApps within the ecosystem. |
| Governance | The process by which network decisions are made. In CrossFi, MPX holders participate in governance by voting on proposals related to ecosystem upgrades and protocol changes. |
| Liquidity Pool | A reserve of tokens locked in smart contracts to facilitate trading and liquidity provision on decentralized exchanges. Liquidity providers earn fees from trades. |
| Oracle | A service that provides external real-world data to blockchain smart contracts. In CrossFi xAssets, oracles supply price feeds for synthetic assets like stocks and commodities. |
| Slippage | The difference between expected and actual execution price of a trade. Occurs due to market volatility or low liquidity. Users can set slippage tolerance to protect against unfavorable prices. |
| Smart Contract | Self-executing programs deployed on blockchain networks that automatically enforce and execute agreements when predefined conditions are met. CrossFi supports smart contracts on both Cosmos and EVM layers. |
| Solidity | A smart contract programming language used on Ethereum. CrossFi supports Solidity-based contracts, enabling developers to deploy smart contracts within the ecosystem. |
| Synthetic Assets | Tokenized derivatives that track the price of real-world assets like stocks (AAPL, NVDA), commodities (gold), or currencies. In xAssets, users can trade synthetics without owning the underlying asset. |
| TVL (Total Value Locked) | The total value of crypto assets deposited in a DeFi protocol, measured in USD. TVL indicates the size and popularity of a protocol or liquidity pool. |
| Vesting | The gradual release of locked tokens over time. In CrossFi xApp, esXFI undergoes vesting (~6 months) to convert into liquid XFI, balancing immediate liquidity with long-term rewards. |
Infrastructure & Tools
| Term | Definition |
|---|---|
| API (Application Programming Interface) | A set of protocols and tools that allow different software applications to interact with each other. APIs enable seamless integration between CrossFi services and external applications. |
| ABCI (Application Blockchain Interface) | An interface that enables applications to interact with the underlying blockchain, handling consensus and networking tasks. ABCI facilitates dApp development in CrossFi Chain. |
| AML (Anti-Money Laundering) | Regulatory procedures to prevent illegal financial activities. CrossFi App implements AML compliance through KYC verification to ensure platform security and legal compliance. |
| BLAST by Bware Labs | A decentralized node infrastructure offering fast and reliable blockchain APIs. BLAST enables developers to build scalable dApps across multiple blockchain networks. |
| Convertation | The process of exchanging one type of asset or token for another within a blockchain ecosystem. In CrossFi, users can convert XFI to MPX or vice versa through supported platforms. |
| Crypto Exchanges | Platforms where users can buy, sell, and trade cryptocurrencies. CrossFi supports integration with both centralized and decentralized exchanges. |
| deBridge | A decentralized cross-chain interoperability protocol. XFI Bridge uses deBridge to enable secure asset transfers between CrossFi Chain and EVM networks like Ethereum and BNB Chain. |
| Gas Fees | Transaction fees paid to validators/miners for processing blockchain operations. In EVM networks, gas is measured in Gwei; CrossFi Chain offers significantly lower gas fees than Ethereum. |
| KYC (Know Your Customer) | Identity verification process required for financial compliance. CrossFi App requires KYC to access virtual and physical cards, ensuring platform security and regulatory adherence. |
| LayerZero | An omnichain interoperability protocol enabling cross-chain message passing. In CrossFi xApp, LayerZero bridge fees are distributed as WETH rewards to LP stakers. |
| MetaMask | A popular browser extension and mobile wallet for Ethereum and EVM-compatible chains. Natively supported by CrossFi xApp and other ecosystem applications. |
| RPC (Remote Procedure Call) | A protocol allowing applications to request services from programs on other computers in a network. CrossFi utilizes RPC endpoints for dApp interaction and data exchange. |
| WalletConnect | An open-source protocol for connecting cryptocurrency wallets to dApps. CrossFi applications support WalletConnect for flexible wallet integration beyond MetaMask. |
Data & Oracles
| Term | Definition |
|---|---|
| Covalent | A platform that extracts blockchain data through APIs, allowing users to access transaction history, network activity, and wallet data for informed decision-making. |
| DIA | An oracle platform that provides customizable on-chain and off-chain data to enhance the accuracy and reliability of smart contracts within the CrossFi ecosystem. |
| POKT | A decentralized infrastructure that provides API access to blockchain data, ensuring reliable and distributed access to network information. |
Need More Information?
If you don't find a term you're looking for, or need more detailed explanations, check out our comprehensive documentation or reach out to our community.