Kite

Decode finance jargon with Kite

Or try:

Terms starting with L

Showing 8 of 8

Explain it like a bankFlips every card at once

Layer 1

also called L1, base layer

The base blockchain that settles everything, such as Ethereum. Maximum security, and the most expensive place to do anything small.

What you already know this as

A central bank's real-time gross settlement system. Everything ultimately settles there, and you would not use it to split a taxi fare.

Layer 2

also called L2

A faster, cheaper network built on top of a base chain, which batches transactions and posts them down for final settlement. Base and Polygon are where most everyday stablecoin movement happens.

What you already know this as

An instant payment rail that nets throughout the day and settles to the central bank at the end of it.

The record of who owns what. Every bank has one, every blockchain is one. The difference is who is allowed to read it and who is allowed to write to it.

What you already know this as

The general ledger, the oldest idea in banking and still the only one that matters.

Liquid staking

also called delegated staking

Staking through a service that hands you a tradeable receipt token, so your capital stays usable while it is locked.

What you already know this as

A fund unit you can sell on, representing bonds you cannot.

Your collateral being sold automatically because its value fell below the threshold. There is no phone call and no grace period, because there is nobody to make one.

What you already know this as

A margin call that executes itself the instant it is breached.

How much you can trade without moving the price. Deep liquidity means the quote you see is the price you get, which matters far more than the headline fee.

What you already know this as

Market depth. The reason a big FX order and a small one get different rates.

A shared pot of two tokens that traders trade against. The people who supplied it earn a cut of the fees, and carry the risk when prices diverge.

What you already know this as

A market maker's inventory, funded by many small investors instead of one desk.

The money the person you are paying actually wants. A payment that ends in the seller's own currency needs no explanation from them and no conversion by them.

What you already know this as

Choosing to be charged in the local currency at a card terminal, which is the cheaper answer nearly every time.

In Kite: You hold dollars, the merchant is paid in their currency, and neither of you has to think about the swap.

All 8 terms shown.