Glossary
Key terms and concepts used throughout HX Finance.
Core Concepts
AMM (Automated Market Maker)
A decentralized exchange protocol that uses smart contracts to create liquidity pools and enable trading without traditional order books.
Concentrated Liquidity
The ability to provide liquidity within specific price ranges rather than across all possible prices, dramatically increasing capital efficiency.
Dynamic Fees
Fees that automatically adjust based on market conditions, volatility, and trading volume - no manual tier selection needed.
Liquidity Pool
A smart contract containing reserves of two tokens that traders can swap between. Liquidity providers earn fees from trades.
Price Range
The upper and lower price bounds within which a liquidity position is active and earning fees.
Tick
The smallest unit of price movement in concentrated liquidity. Each tick represents a 0.01% (1 basis point) price change.
Positions & Trading
In-Range Position
A liquidity position where the current market price falls within the position's selected price range, actively earning fees.
Out-of-Range Position
A liquidity position where the current price has moved outside the selected range. The position stops earning fees but can be repositioned.
Price Impact
The change in token price caused by a trade. Larger trades relative to pool liquidity cause higher price impact.
Slippage
The difference between expected and executed price due to market movements between transaction submission and execution.
TWAP (Time-Weighted Average Price)
An oracle mechanism that provides the average price over a specific time period, resistant to manipulation.
Liquidity Provision
LP (Liquidity Provider)
Users who deposit token pairs into pools to facilitate trading and earn fees.
LP Token/NFT
A non-fungible token representing ownership of a specific liquidity position with defined parameters.
Impermanent Loss
The difference in value between holding tokens in a liquidity pool versus holding them directly, caused by price movements.
Capital Efficiency
The ratio of effective liquidity to total capital deployed. Concentrated liquidity can be up to 4000x more capital efficient.
Range Order
Using a narrow liquidity range as a limit order - the position converts from one token to another as price crosses the range.
HX Finance Specific
HXP
On-chain points token that mirrors standard points 1:1, providing blockchain verification and potential future tradability.
Points Multiplier
Tier-based bonuses that multiply all points earned, ranging from 1.0x (Bronze) to 2.0x (Diamond).
WHYPE
Wrapped HYPE token (ERC-20 compatible version of native HYPE) used for trading in pools.
Base Tokens
Core tokens used for routing: WHYPE, USDE, UETH, UBTC, and others that form trading pair foundations.
Technical Terms
Factory Contract
Smart contract responsible for deploying new trading pools with consistent parameters.
Router Contract
Smart contract that finds optimal trading paths and executes swaps across one or multiple pools.
Position Manager
Smart contract (NFT manager) that handles the creation, modification, and tracking of liquidity positions.
Tick Spacing
The minimum distance between initialized ticks in a pool, affecting position granularity and gas costs.
Sqrt Price
Square root of the price ratio used internally for calculations, enabling efficient math operations.
Fee Terms
Base Fee
The starting fee level for a pool before dynamic adjustments.
Fee Tier (Legacy)
Fixed fee levels used in older AMM versions (0.05%, 0.3%, 1%). HX Finance uses dynamic fees instead.
Protocol Fee
Optional fee that can be activated by governance, separate from LP fees.
Fee APY
Annualized percentage yield from trading fees, calculated based on 24h or 7d fee generation.
Safety Terms
Allowance
Permission given to a smart contract to spend tokens on your behalf, required before swaps or liquidity provision.
Deadline
Transaction expiration time to prevent execution during unfavorable conditions.
Minimum Output
The minimum tokens you'll accept from a swap, protecting against excessive slippage.
Getting Help
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