📖GLOSSARY

AMM

Automated Market Maker. More on its dedicated page

Booking

Booking is an action that a user submits his intention to make transactions in a liquidity pool. More on its dedicated page

APR

Annual Percentage Rate, the yearly interest expressed as a percentage of the investment amount. It does not take compounding interests into account.

APY

Annual Percentage Yield, the yearly interest taking into account the effect of compounding interests, expressed as a percentage of the investment amount.

Cardano Native Token

A custom token issued on Cardano Blockchain that enables the transacting of assets on Cardano. Each Cardano Native Token has its Policy Id. Check it to confirm the token's authenticity before investing. Cardax DEX enables the exchange between Cardano Native Tokens.

Exit

Each user, after he has booked a slot, is given a designated lane to make transactions in a liquidity pool. When finished making the transactions, the user should exit the lane so that the lane becomes free for the next user.

Front-running

Trading an asset with inside information that a future transaction will affect its price and placing an order before that for taking advantage. On blockchain, front running usually happens when a miner or node operator who can access information on pending transactions places an order in his favour.

Lane

The lane is an exclusive pathway in which users on Cardax DEX can place orders to a liquidity pool. Each user has his own designated lane, so he can make transactions without contentions and interruptions. A pool has a maximum number of lanes it can take. When all lanes are occupied, unbooked users need to submit the booking first and wait for getting into a free lane.

LP

Liquidity Provider. More on its dedicated page

LP Token

When a liquidity provider provides liquidity in a pool, he gets an LP token that represents his share of liquidity in the pool.

Plutarch

Cardax DEX's smart contracts are written in Plutarch. Plutarch is a thin language over the (untyped) Plutus Core (UPC). The advantage of using Plutarch is that a lot of boilerplate introduced by a quite complicated compilation chain from PlutusTx to UPC can be omitted (PlutusTx compile chain). This reduces not only the script size, but also reduces the required budgets on memory consumption and CPU usage.

Slippage Tolerance

Slippage is the difference in a token's price between what the trader initially requested and the execution price. Slippage Tolerance is how big a slippage a trader can accept. It is expressed as a percentage of the requested price.

Streaming Merge

Streaming Merge is Cardax’s proprietary solution to the concurrency issue on the Cardano blockchain. More on its dedicated page

TVL

Total Value Locked. On Cardax DEX it refers to the total liquidity of all pools currently locked on the DEX. The value is expressed in ADA.

Volume

Trading volume, which is measured by token swap transactions' value in ADA.

Web-App

The user interface where users interact with Cardax DEX. Users need to connect wallets on the Web-App to make transactions.