Glossary
Last updated
Last updated
An automated market maker is a smart contract on Ethereum that holds on-chain liquidity reserves. Users can trade against these reserves at prices set by an automated market making formula.
The automated market making algorithm used by DoveSwap. See .
ERC20 tokens are fungible tokens on Ethereum. DoveSwap supports all standard ERC20 implementations.
A smart contract that deploys a unique smart contract for any ERC20/ERC20 trading pair.
A smart contract deployed from the DoveSwap Factory that enables trading between two ERC20 tokens.
Liquidity within a pair is pooled across all liquidity providers.
A liquidity provider is someone who deposits an equivalent value of two ERC20 tokens into the liquidity pool within a pair. Liquidity providers take on price risk and are compensated with fees.
The price between what users can buy and sell tokens at a given moment. In DoveSwap this is the ratio of the two ERC20 token reserves.
The difference between the mid-price and the execution price of a trade.
The amount the price moves in a trading pair between when a transaction is submitted and when it is executed.
Smart contracts that are essential for DoveSwap to exist. Upgrading to a new version of core would require a liquidity migration.
External smart contracts that are useful, but not required for DoveSwap to exist. New periphery contracts can always be deployed without migrating liquidity.
A trade that uses the tokens being purchased before paying for them.
The constant product formula.
The "k" value in the constant product formula