DeFi Glossary

AMM (Automated Market Maker)

A type of decentralized exchange protocol that uses mathematical formulas to price assets.

A smart contract containing paired tokens that enables trading and earning fees.

The difference between expected and actual price execution in a trade.

The temporary loss of funds sometimes experienced by liquidity providers due to price volatility.

Transaction fees paid to Ethereum network validators for processing transactions.

The governance token of the Uniswap protocol.

A token received by liquidity providers representing their share in a liquidity pool.

How much a trade affects the price of tokens in a liquidity pool.

A feature in Uniswap V3 allowing liquidity providers to specify price ranges for their assets.

A feature allowing users to withdraw tokens from a pool and repay them in the same transaction.