StakePoint
Solana DeFi Glossary
Definitions of key terms used in Solana DeFi, token locking, LP locking, and staking. Published by the StakePoint team.
StakePoint Products
Solana Token Locker
A smart contract that locks SPL tokens on-chain until a set unlock date.
LP Locker
A smart contract that locks liquidity pool tokens on-chain until a set unlock date.
Staking Pool
An on-chain contract where token holders deposit tokens to earn rewards.
Token Locking
The process of transferring tokens into a smart contract until a fixed unlock date.
Liquidity Locking
The process of locking LP tokens on-chain to prove liquidity cannot be withdrawn early.
Solana Concepts
Program Derived Address (PDA)
An on-chain Solana account controlled by a smart contract with no private key.
Non-Custodial
A design where a platform never holds or controls user funds.
Anchor Smart Contract
A Solana smart contract built using the Anchor framework.
Solana DeFi
Decentralised finance applications built on the Solana blockchain.
Token Standards & Assets
SPL Token
The standard token format on the Solana blockchain.
Token-2022
An upgraded Solana token standard supporting transfer taxes and custom extensions.
LP Token
A token representing a share of a liquidity pool on a decentralised exchange.
Token Standard
A specification defining how tokens are created, transferred, and managed on a blockchain.
Token-2022 Extensions
Optional modules that add advanced features to Token-2022 tokens on Solana.
Transfer Fee Extension
A Token-2022 extension that automatically collects a percentage of each token transfer.
Interest-Bearing Extension
A Token-2022 extension that makes token balances automatically accrue interest over time.
Permanent Delegate
A Token-2022 extension granting an irrevocable authority over all token accounts of a given mint.
Close Mint Authority
The authority with permission to close a Token-2022 token mint account on Solana.
Metadata Extension (Token-2022)
A Token-2022 extension that stores token name, symbol, and URI directly on-chain.
Protocols & Platforms
Raydium
The largest decentralised exchange and AMM on Solana.
Meteora
A Solana DEX and liquidity protocol known for dynamic liquidity pools.
Orca
A Solana DEX offering concentrated liquidity pools and a simple trading interface.
PumpSwap
A Solana AMM and DEX launched by Pump.fun for tokens that graduate from the bonding curve.
Raydium AMM v4
Raydium's original automated market maker pool type, integrated with Serum order books.
Raydium CPMM
Raydium's Constant Product Market Maker: a standard AMM pool type on Solana.
Meteora DLMM
Meteora's Dynamic Liquidity Market Maker: a concentrated liquidity pool type on Solana.
Whirlpool (Orca)
Orca's concentrated liquidity pool type on Solana.
DEX & Liquidity
Liquidity Pool
A smart contract holding pairs of tokens that enables decentralised token trading.
Decentralised Exchange (DEX)
A peer-to-peer trading platform that operates via smart contracts without a central authority.
DEX Aggregator
A tool that routes token swaps across multiple DEXs to find the best price.
Jupiter Aggregator
A Solana DEX aggregator that finds the best swap route across multiple liquidity sources.
Jupiter Limit Order
A Jupiter feature allowing traders to set a target price for a token swap to execute automatically.
Jupiter DCA
Jupiter's dollar-cost averaging feature for automated recurring token purchases on Solana.
Concentrated Liquidity
A liquidity model where providers deposit capital within a specific price range for higher capital efficiency.
Full-Range Liquidity
Liquidity that is active across all possible prices, from zero to infinity.
Liquidity Provider (LP)
A user who deposits tokens into a DEX liquidity pool to enable trading and earn fees.
Impermanent Loss
The temporary loss in value a liquidity provider experiences when token prices diverge from the deposit ratio.
Fee Tier
The trading fee percentage charged on swaps within a specific liquidity pool.
Tick Spacing
The granularity of price bins in a concentrated liquidity pool.
Slippage
The difference between the expected price of a trade and the actual execution price.
Price Impact
The change in token price caused by a trade's own effect on the liquidity pool.
Wallets & Security
Solana Wallet
A software application that stores Solana private keys and signs on-chain transactions.
Phantom Wallet
The most popular Solana browser extension and mobile wallet.
Solana Wallet Adapter
A standard library that allows Solana dApps to connect with multiple wallets through a unified interface.
Ledger Hardware Wallet
A physical device that stores cryptocurrency private keys offline for maximum security.
Cold Wallet
A cryptocurrency wallet that stores private keys offline, not connected to the internet.
Hot Wallet
A cryptocurrency wallet connected to the internet and used for regular transactions.
Seed Phrase
A 12 or 24 word backup phrase that gives full access to a cryptocurrency wallet.
Wallet Address
The public key of a Solana wallet, used to receive tokens and identify on-chain activity.
Multisig
A wallet or signing configuration requiring multiple independent approvals to execute a transaction.
Squads Multisig
A Solana multi-signature wallet protocol requiring multiple approvals for transactions.
Tools & Analytics
Solscan
A block explorer for the Solana blockchain that allows on-chain verification of transactions and accounts.
DexScreener
A real-time token price and liquidity tracking tool for Solana and other blockchains.
Birdeye
A Solana token analytics and portfolio tracking platform.
DappRadar
A leading dApp analytics platform tracking user activity and TVL across blockchains.
DeFiLlama
The leading DeFi analytics platform tracking TVL across blockchains and protocols.
RugCheck
A Solana token security scanner that audits token authority status and risk factors.
Token Economics
Tokenomics
The economic design of a token including supply, distribution, and incentive mechanisms.
Circulating Supply
The number of tokens currently available and tradeable in the market.
Token Mint
The unique on-chain address that identifies a specific token on Solana.
Token Burn
The permanent removal of tokens from circulation by sending them to an unrecoverable address.
Mint Authority
The account with permission to create new tokens for a given token mint on Solana.
Freeze Authority
The account with permission to freeze token accounts on Solana, preventing transfers.
Airdrop (Solana)
The distribution of free tokens to Solana wallet addresses as a marketing or reward mechanism.
Market Cap
The total market value of a token's circulating supply.
TVL (Total Value Locked)
The total value of assets deposited or locked in a DeFi protocol's smart contracts.
Yield & Returns
APY (Annual Percentage Yield)
The annualised return on a staking or yield position including compounding effects.
APR (Annual Percentage Rate)
The simple annualised rate of return on a staking position without compounding.
Staking Rewards
Tokens earned by stakers for locking tokens in a staking pool.
Reflection Rewards
Automatic token distributions funded by transfer taxes collected on each token transaction.
DeFi Yield
Returns generated by providing liquidity, staking, or lending in decentralised finance protocols.
Yield Farming
The practice of deploying capital across DeFi protocols to maximise returns.
Solana Infrastructure
SOL
The native cryptocurrency of the Solana blockchain, used to pay transaction fees and for staking.
Solana Mainnet
The live production blockchain network of Solana where real transactions occur.
Validator
A network participant that processes transactions and maintains the Solana blockchain.
Proof of History (PoH)
Solana's cryptographic clock that timestamps transactions before they enter consensus.
Proof of Stake (PoS)
A consensus mechanism where validators are selected to produce blocks based on their staked SOL.
Tower BFT
Solana's optimised Byzantine Fault Tolerance consensus algorithm.
Gulf Stream
Solana's transaction forwarding protocol that pushes transactions to validators before their slot.
Turbine
Solana's block propagation protocol that splits block data into small packets for fast distribution.
Sealevel
Solana's parallel transaction processing engine that executes non-conflicting transactions simultaneously.
Solana Slots
The basic time unit on Solana: approximately 400 milliseconds: during which one block is produced.
Solana Epochs
Fixed time periods on Solana during which validator assignments and staking rewards are calculated.
Transaction Fee (Solana)
The small SOL fee paid to validators for processing transactions on Solana.
Developer Concepts
Smart Contract
Self-executing code deployed on a blockchain that runs automatically when conditions are met.
Anchor Smart Contract
A Solana smart contract built using the Anchor framework.
Anchor IDL
A JSON file describing the interface of an Anchor smart contract on Solana.
BPF Program
A Solana smart contract compiled to Berkeley Packet Filter bytecode for execution by validators.
Instruction (Solana)
A single operation within a Solana transaction that calls a specific smart contract function.
Account Discriminator
An 8-byte prefix added to Anchor program accounts to identify their type.
Program Derived Address (PDA)
An on-chain Solana account controlled by a smart contract with no private key.
Associated Token Account (ATA)
A deterministic token account address for a given wallet and token mint on Solana.
Token Account
An on-chain Solana account that holds a balance of a specific SPL token.
Solana Rent
A small SOL deposit required to keep an on-chain account active on Solana.
Solana Program Library (SPL)
The official collection of on-chain programs maintained by the Solana team.
Solana Wallet Adapter
A standard library that allows Solana dApps to connect with multiple wallets through a unified interface.
Native Staking
Related Concepts
Token Vesting
A release schedule that unlocks tokens gradually over time.
Rug Pull
A scam where project developers remove liquidity or sell tokens after attracting investor funds.
Token Burn
The permanent removal of tokens from circulation by sending them to an unrecoverable address.
Bonding Curve
An automated pricing mechanism where token price increases as supply sold increases.
Solana Pay
An open payment protocol on Solana enabling fast, low-cost transactions at point of sale.