Liquidity Provider (LP)
An LP is a party that deposits an equivalent value of 2 (or more) tokens into a liquidity pool. They take on price risk and are compensated with fees.

Liquidity Pool
A smart contract holding 2 tokens, enabling trading between them.

Liquidity
The ability to buy or sell a particular cryptocurrency in the market without significantly affecting the price.

Liquidate
The process of turning property or assets into cash.

Layer 2 (L2)
A collective term for solutions that help scale applications. In the context of crypto, Layer 2 refers to a secondary framework or protocol that is built on top of an existing blockchain.