Glossary
Key terms and definitions for AchSwap and AchMarket.
A
AMM (Automated Market Maker)
A system that provides liquidity and prices trades algorithmically without order books.
APR (Annual Percentage Rate)
The yearly interest rate earned on investments, including compounding.
B
Bridge
A cross-chain solution that transfers tokens between different blockchain networks.
C
CCTP (Cross-Chain Transfer Protocol)
Circle's protocol for bridging USDC between chains.
Chain ID
A unique identifier for a blockchain network (ARC Testnet: 5042002).
Concentration
In V3, concentrating liquidity within a specific price range to earn more fees.
D
Deadline
The time by which a prediction market must be resolved.
E
ERC-20
The standard for fungible tokens on Ethereum.
F
Fee Tier
The percentage of trading fees charged by a liquidity pool (V3).
G
Gas
The computational work required to execute blockchain transactions.
I
Impermanent Loss
The temporary loss of value when providing liquidity due to price changes.
L
LMSR
Logarithmic Market Scoring Rule - the pricing algorithm used by prediction markets.
LP (Liquidity Provider)
A user who deposits tokens into a liquidity pool.
M
Mint
The creation of new tokens (in this case, shares).
P
Pool
A smart contract holding tokens for trading.
Payout
The USDC received when redeeming winning shares or claiming refunds.
R
Resolution
The act of determining the winning outcome of a prediction market.
RPC (Remote Procedure Call)
A method for communicating with a blockchain node.
S
Share
A unit representing ownership of an outcome in a prediction market.
Slippage
The difference between expected and actual trade execution price.
Smart Contract
Self-executing code deployed on the blockchain.
Swap
Exchanging one token for another.
T
Tick
The minimum price granularity in V3 concentrated liquidity.
TVL (Total Value Locked)
The total value of assets deposited in a protocol or pool.
V
V2
The classic AMM model with uniform liquidity distribution.
V3
The concentrated liquidity model allowing targeted price ranges.
W
Wallet
Software that stores private keys and allows signing transactions.
Wrapped Token
A token that represents another asset (e.g., wUSDC).