> For the complete documentation index, see [llms.txt](https://docs.radao.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.radao.org/start-here/glossary.md).

# Glossary

<table data-full-width="true"><thead><tr><th width="309">Word or Acronym</th><th>Description</th></tr></thead><tbody><tr><td><strong>AMM</strong></td><td>Also known as <a href="https://en.wikipedia.org/wiki/Constant_function_market_maker">Constant function market</a><a href="https://en.wikipedia.org/wiki/Constant_function_market_maker"> maker</a> early description of a CFMM was published by economist <a href="https://mason.gmu.edu/~rhanson/mktscore.pdf">Robin Hanson</a> (2002) are a type of decentralized exchange (DEX) that use algorithmic “money robots” to make it easy to buy and sell crypto assets. <strong>AMM replaces the buy and sell orders in an order book market with a liquidity pool of two assets</strong>, both valued relative to each other.</td></tr><tr><td><strong>Bonds</strong></td><td>a type of security under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to provide cash flow to the creditor (e.g. repay the principal (i.e. amount borrowed) of the bond at the maturity date as well as interest (called the coupon) over a specified amount of time).<br>[<a href="https://en.wikipedia.org/wiki/Bond_(finance)">wikipedia</a>]<br><br><strong>Yield bonds</strong> allow investors to receive interest payments (coupons) until the debt matures or the initial investment (principal) is repaid. In the event of default, a guarantee can be provided.<br><br><strong>Convertible bonds</strong> are a fixed-income corporate debt security that can be converted into a predetermined number of common stock or equity shares. They might provide yield of not.</td></tr><tr><td><strong>Centralized Exchanges (CEX)</strong></td><td>a type of cryptocurrency exchange, meaning they allow users to buy and sell cryptocurrencies, onboard their KYC and <strong>convert FIAT money into crypto</strong> and vice versa. <strong>Also required to access tokenized shares in most of the countries.</strong></td></tr><tr><td><strong>DAO</strong></td><td>A decentralized autonomous organization sets itself a mission and operates through a set of decisions that establish and provide rules of governance. <strong>It allow the community to control Radao</strong>.</td></tr><tr><td><strong>DeFi</strong></td><td>a way of trading, buying and selling with few intermediaries.</td></tr><tr><td><strong>Decentralized Exchanges (DEX)</strong></td><td>peer-to-peer marketplace where users can <strong>trade cryptocurrencies in a non-custodial manner</strong> without the need for an intermediary to facilitate the transfer and custody of funds.</td></tr><tr><td><strong>Equity</strong></td><td>a security that represents the ownership of a fraction of the issuing corporation.</td></tr><tr><td><strong>FIAT</strong></td><td>Fiat money is issued and controlled by (central) banks and governments.</td></tr><tr><td><strong>Initial Pool Offering (IPO)</strong></td><td>bringing together the resources proposed by the Radao community for investment. <strong>Allow primary decentralized market.</strong></td></tr><tr><td><strong>Liquidity pool (LP)</strong></td><td>is a smart contract that contains a reserve of two or more cryptocurrency tokens in a decentralized exchange (DEX). <strong>Allow participants to exchange tokens.</strong></td></tr><tr><td><strong>IPFS (Interplanetary File System)</strong></td><td>a file system that allows you to store files and track versions over time, much like Git, keeping track of them on a distributed network. <strong>Used by Radao to provide immutable access to contracts and investment documents linked to the token.</strong></td></tr><tr><td><strong>Rewards</strong></td><td>tokenized rewards allowing to get the bonds coupons</td></tr><tr><td><strong>RWA or Real World Asset</strong></td><td>Real World Assets (“RWAs”) are assets that exist off-chain, but are tokenized and brought on-chain to be used as a source of yield within DeFi.</td></tr><tr><td><strong>Self-held securities account</strong></td><td>crypto wallet holding financial securities in the form of tokens.</td></tr><tr><td><strong>Share (stock)</strong></td><td>a unit of equity ownership in the capital stock of a corporation is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder.<br>[<a href="https://en.wikipedia.org/wiki/Share_(finance)">wikipedia</a>]</td></tr><tr><td><strong>Smart contracts</strong></td><td>programs stored on a blockchain that run when predetermined conditions are met. A collection of those programs are usually called "protocol".</td></tr><tr><td><strong>SPV (Special Purpose Vehicule)</strong></td><td>An SPV, or special-purpose vehicle, is a legal entity that allows multiple investors to pool their capital and make an investment. Tokenized SPV is a process allowing SPV shares to be tokens.</td></tr><tr><td><strong>Staking</strong></td><td>Term initially used to describe the provision of liquidity enabling proof-of-stake blockchains to function. With the democratization of crypto, users have associated this term with a means of accessing "passive returns", which in TradFi can correspond to bond coupons.<br>In Radao, you have to stake your bond tokens to obtain your coupon payment, which removes the security from the secondary market.</td></tr><tr><td><strong>TradFi</strong></td><td>refers to the way in which our traditional financial system and institutions operate. Some institutions include banks, hedge funds or brokerage houses, for example.</td></tr></tbody></table>


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.radao.org/start-here/glossary.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.