WhiteSwap
  • About WhiteSwap
  • Protocol Overview
    • How WhiteSwap Works
    • Eсosystem Participants
    • Smart Contracts
    • Glossary
  • Core Concepts
    • Swaps
    • Pools
    • Flash Swaps
    • Oracles
    • Farming
    • WSD Staking
  • Advanced Topics
    • Fees
    • Pricing
    • Understanding Returns
    • Security
    • Research
  • Governance
    • Overview
    • Process
    • Glossary
  • Governance Token
    • Introducing WSD
    • Allocation & Vesting
    • Community Treasury
  • Developer Guides
    • Token Listing
    • Javascript SDK
      • SDK Quick Start
      • Fetching Data
      • Pricing
      • Trading
      • Pair Addresses
  • Reference
    • API
      • API Overview
      • Entities
      • Queries
    • SDK
      • Getting Started
      • Token
      • Pair
      • Route
      • Trade
      • Fractions
      • Fetcher
      • Other Exports
    • Smart Contracts
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  1. Protocol Overview

Glossary

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Last updated 4 years ago

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Automated market maker

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.

Constant product formula

The automated market making algorithm used by WhiteSwap. See .

ERC20

ERC20 tokens are fungible tokens on Ethereum. WhiteSwap supports all standard ERC20 implementations.

Factory

A smart contract that deploys a unique smart contract for any ERC20/ERC20 trading pair.

Pair

A smart contract deployed from the WhiteSwap Factory that enables trading between two ERC20 tokens.

Pool

Liquidity within a pair is pooled across all liquidity providers.

Liquidity provider / LP

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.

Mid price

The price between what users can buy and sell tokens at a given moment. In WhiteSwap, this is the ratio of the two ERC20 token reserves.

Price impact

The difference between the mid price and the execution price of a trade.

Slippage

The amount the price moves in a trading pair between when a transaction is submitted and when it is executed.

Core

Smart contracts that are essential for WhiteSwap to exist. Upgrading to a new version of core would require a liquidity migration.

Periphery

External smart contracts that are useful, but not required for WhiteSwap to exist. New periphery contracts can always be deployed without migrating liquidity.

Flash swap

A trade that uses the tokens being purchased before paying for them.

x * y = k

The constant product formula.

Invariant

The “k” value in the constant product formula

x*y=k