AMM
An automated market maker uses a defined mechanism to price trades against liquidity in a pool. Different AMM designs use different pricing rules and ways of concentrating liquidity.
Read the related guideKeep the essentials close
The words behind the route.
A practical glossary for reading a quote, following a route, and understanding a wallet prompt.
Approval
An on-chain authorization that can establish or change a token allowance for a spender. An approval is distinct from connecting a website to a wallet.
Read the related guideBridge
A mechanism for moving assets or information between blockchain networks. Its design introduces dependencies beyond a same-chain transaction and may involve a different asset representation.
Read the related guideConcentrated liquidity
Liquidity allocated within a defined price range. Capital outside the active range does not provide the same immediate trading depth as capital positioned around the current price.
Read the related guideDEX
A decentralized exchange: a trading protocol or system that enables asset exchange through mechanisms such as liquidity pools or order books. The interface, routing layer, and execution venue can be separate components.
Read the related guideDEX aggregator
A service or system that compares or combines liquidity across multiple sources. Its coverage, fees, route construction, and execution model affect the result it can offer.
Read the related guideGas
A unit of computational work used by networks such as Ethereum. The amount of gas consumed and the effective price per gas determine the transaction fee under the applicable fee mechanism.
Read the related guideLiquidity pool
Assets held under a trading protocol’s rules and made available for swaps. The pool’s pricing design, current state, and active depth shape how much an order can receive.
Read the related guideMEV
Maximal extractable value: value that can arise from including, excluding, or ordering transactions within the relevant execution process. Sandwich attacks are one harmful pattern associated with transaction ordering.
Read the related guideMinimum received
A lower output boundary applied by a particular swap workflow. Its calculation and enforcement depend on the interface and execution method, and it should be distinguished from the estimated output.
Read the related guideMulti-hop route
A swap path that uses one or more intermediate assets between the input and output tokens. Its usefulness depends on the available liquidity and total execution cost.
Read the related guidePermit
A signature-based authorization scheme, often used to establish token permissions. The exact meaning depends on the standard or contract; a signature submission deadline is not automatically an allowance expiration.
Read the related guidePrice impact
The effect that a trade itself has on the execution price relative to a reference market or pool price. It depends on trade size and the liquidity available along the path.
Read the related guideQuote
An estimate or offer for a proposed trade under stated conditions. A quote should identify the input, output, network, timing, costs, and execution constraints relevant to its use.
Read the related guideRFQ
Request for quote: a process that asks liquidity providers or market makers for a trade offer. The terms and settlement mechanism can differ from a trade against an AMM pool.
Read the related guideRouter
A component that helps construct a path for a swap. Route discovery, transaction construction, and on-chain settlement can be handled by separate systems.
Read the related guideSlippage
A difference between an expected trade result and the result achieved at execution. It is distinct from the effect that the trade itself has on the pool price.
Read the related guideSlippage tolerance
An execution boundary chosen within a swap workflow, often expressed as a percentage. It does not reserve liquidity or guarantee that a submitted transaction will execute.
Read the related guideSpender
The address authorized by a token allowance or permission scheme. It may differ from the address that receives the execution transaction in a routing integration.
Read the related guideSplit route
A path that divides a swap across multiple liquidity sources. Splitting can change price impact and execution costs; more paths do not guarantee a better result.
Read the related guideToken allowance
The amount a particular spender is authorized to transfer under a token’s allowance rules. Disconnecting a website does not itself remove that on-chain authorization.
Read the related guideTransaction receipt
A record used to inspect the result of a transaction after inclusion. A transaction identifier alone does not prove execution success or establish the final assets received.
Read the related guide