📖 Glossary
Last updated
Last updated
An Automated Market Maker (AMM) is a decentralized exchange mechanism that uses liquidity pools and mathematical formulas to determine the price of assets, enabling trades without a traditional order book or intermediaries. Liquidity is provided by users, who earn fees in return.
A liquidity provider is someone who deposits assets into a liquidity pool. Liquidity providers take on price risk and are compensated with trading fees.
Digital assets that are stored in a pool contract, and are able to be traded against by traders.
A smart contract deployed from a that enables trading between two or more assets.
A contract deployed by the protocol that pairs two assets.
The difference between the mid-price and the execution price of a trade.
Fees that are rewarded to the protocol itself, rather than to liquidity providers.
Fees collected upon swapping which are rewarded to liquidity providers.
An amount the price moves in a trading pair between when a transaction is submitted and when it is executed.