Blockchain Technology DeFi and Tokenomics 2

Question 1

What is a token's 'total supply' in tokenomics?

Accepted Answer

The maximum number of tokens that will ever exist

Answer

Total supply refers to the maximum number of tokens that will ever be created according to the protocol's rules, setting a hard cap on issuance.

Question 2

What does 'TVL' measure in DeFi?

Accepted Answer

Total Value Locked in smart contracts

Answer

TVL (Total Value Locked) measures the total dollar value of assets deposited and locked within a DeFi protocol's smart contracts.

Question 3

What is a 'flash loan' in DeFi?

Accepted Answer

An uncollateralized loan that must be borrowed and repaid within the same transaction

Answer

Flash loans are uncollateralized DeFi loans that must be borrowed and repaid within a single blockchain transaction, or the entire transaction reverts.

Question 4

Which of the following is an example of an algorithmic stablecoin?

Accepted Answer

TerraUSD (UST)

Answer

TerraUSD (UST) was an algorithmic stablecoin that maintained its peg through an algorithmic relationship with the LUNA token rather than fiat reserves.

Question 5

In tokenomics, what is 'vesting'?

Accepted Answer

A schedule that releases tokens to team members or investors gradually over time

Answer

Vesting is a time-based release schedule for tokens allocated to team members, investors, or advisors, preventing immediate sell-off after a project launches.

Blockchain Practice Test

Blockchain Practice Test

Blockchain Technology DeFi and Tokenomics 2