Token whose value is collateralized by a specific underlying asset held in reserve. Differs from algorithmic stablecoins in having a 1:1 real-world claim. USDC (fiat-backed), PAXG (gold-backed), and Ondo's USDY (treasury-backed) are examples.
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Token whose value is collateralized by a specific underlying asset held in reserve. Differs from algorithmic stablecoins in having a 1:1 real-world claim. USDC (fiat-backed), PAXG (gold-backed), and Ondo's USDY (treasury-backed) are examples.
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AMMs, routing, liquidity, lending, and trading infrastructure.
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Asset-Backed Token (asset-backed-token) Category: DeFi Definition: Token whose value is collateralized by a specific underlying asset held in reserve. Differs from algorithmic stablecoins in having a 1:1 real-world claim. USDC (fiat-backed), PAXG (gold-backed), and Ondo's USDY (treasury-backed) are examples. Related: Stablecoin, Collateral, Real-World Asset Tokenization (RWA), USDC (Native Solana)
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A token pegged to a stable asset, typically the US dollar. Major stablecoins on Solana include USDC (Circle, natively minted), USDT (Tether), and UXD (algorithmic). Stablecoins are critical DeFi primitives used as trading pairs, lending collateral, and yield farming. USDC on Solana uses the SPL Token program with freeze authority retained by Circle.
Assets deposited into a lending protocol to secure a loan. Each asset has a collateral factor (e.g., SOL at 80% means $100 of SOL supports $80 in borrows). If the collateral value drops below the maintenance threshold, the position is liquidated. Volatile assets have lower collateral factors than stablecoins.
The process of representing ownership of traditional financial assets (treasuries, private credit, real estate, equities) as tokens on a blockchain. Tokenized RWAs grew from ~$6 billion in 2022 to over $30 billion by 2025, led by BlackRock's BUIDL fund (tokenized treasuries) and Maple Finance (private credit). RWAs bridge traditional finance with DeFi composability.
Circle-issued USDC minted directly on Solana through the SPL Token program, as opposed to bridged USDC from other chains. Native USDC (mint: EPjFWdd5AufqSSqeM2qN1xzybapC8G4wEGGkZwyTDt1v) is the most widely used stablecoin on Solana with deep DeFi integration. Circle maintains freeze authority over the mint for regulatory compliance and supports CCTP for native cross-chain transfers.
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Process of issuing a blockchain token representing a claim on an off-chain asset. Involves legal structure (SPV/trust), custodian appointment, and minting redeemable tokens. Token-2022 extensions provide the programmable compliance layer institutional tokenization requires.
A tokenized receipt representing restaked assets in protocols like EigenLayer, allowing users to maintain DeFi liquidity while earning restaking yields. When users restake LSTs via protocols like EtherFi (eETH) or Renzo (ezETH), they receive LRTs that can be used as collateral, traded, or deployed in additional DeFi strategies. LRTs reached $14 billion combined market cap by 2025.
A token issued to liquidity providers representing their proportional share of a pool's reserves and accrued fees. LP tokens can be burned to withdraw the underlying assets. The value of LP tokens changes as the pool's token ratios shift and fees accumulate. LP tokens are often stakeable in yield farming programs for additional rewards.
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A token pegged to a stable asset, typically the US dollar. Major stablecoins on Solana include USDC (Circle, natively minted), USDT (Tether), and UXD (algorithmic). Stablecoins are critical DeFi primitives used as trading pairs, lending collateral, and yield farming. USDC on Solana uses the SPL Token program with freeze authority retained by Circle.
Assets deposited into a lending protocol to secure a loan. Each asset has a collateral factor (e.g., SOL at 80% means $100 of SOL supports $80 in borrows). If the collateral value drops below the maintenance threshold, the position is liquidated. Volatile assets have lower collateral factors than stablecoins.
The process of representing ownership of traditional financial assets (treasuries, private credit, real estate, equities) as tokens on a blockchain. Tokenized RWAs grew from ~$6 billion in 2022 to over $30 billion by 2025, led by BlackRock's BUIDL fund (tokenized treasuries) and Maple Finance (private credit). RWAs bridge traditional finance with DeFi composability.
Circle-issued USDC minted directly on Solana through the SPL Token program, as opposed to bridged USDC from other chains. Native USDC (mint: EPjFWdd5AufqSSqeM2qN1xzybapC8G4wEGGkZwyTDt1v) is the most widely used stablecoin on Solana with deep DeFi integration. Circle maintains freeze authority over the mint for regulatory compliance and supports CCTP for native cross-chain transfers.
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A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
An AMM design where liquidity providers concentrate their capital within specific price ranges instead of across the full 0-to-infinity range. CLMMs dramatically improve capital efficiency—LPs earn more fees per dollar deposited within their active range. If the price moves outside the range, the position becomes inactive. Orca Whirlpools and Raydium CLMM are leading implementations on Solana.
A smart-contract-held reserve of two or more tokens that enables trading via an AMM. Users deposit token pairs in specified ratios to become liquidity providers and earn trading fees. Pools are identified by their token pair and fee tier. Pool depth (total value locked) determines price impact for trades.
A token issued to liquidity providers representing their proportional share of a pool's reserves and accrued fees. LP tokens can be burned to withdraw the underlying assets. The value of LP tokens changes as the pool's token ratios shift and fees accumulate. LP tokens are often stakeable in yield farming programs for additional rewards.