Finance Terms

Yield Strategy

An individual or organization's activity or collection of financial instruments to obtain yield, and the subject of Rate Profile Optimization.

Rate Profile Optimization

Set of activities performed by an individual or organization to obtain lower cost and/or lower risk on their borrowing/capital seeking, or higher return at acceptable levels of risk for their lending/investment.

Liquidity

The efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself.

Market Maker

An individual or organization that stands ready to buy and sell assets on a regular and continuous basis at a publicly quoted price.

Capital Efficiency

In traditional terms Capital Efficiency refers to the ratio of capital expenditures to production additions. In DeFi applications, this is considerably affected by the accumulation of gas fees required to transact on most blockchains.