> 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>