Skip to content

Update 04-glossary.md #897

New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

Sign up for GitHub

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

Open
wants to merge 1 commit into
base: main
Choose a base branch
from
Open

Update 04-glossary.md #897

Changes from all commits
Commits
Show all changes
1 commit
Select commit
File filter

Filter by extension

Filter by extension
Conversations
Failed to load comments.
Loading
Jump to
Jump to file
Failed to load files.
Loading
Diff view
Diff view
20 changes: 10 additions & 10 deletions docs/contracts/v2/concepts/01-protocol-overview/04-glossary.md
View file
Open in desktop
Original file line number Diff line number Diff line change
Expand Up @@ -18,48 +18,48 @@ ERC20 tokens are fungible tokens on Ethereum. Uniswap supports all standard ERC2

### Factory

A smart contract that deploys a unique smart contract for any ERC20/ERC20 trading pair.
A smart contract responsible for deploying unique contracts for each ERC20/ERC20 trading pair.

### Pair

A smart contract deployed from the Uniswap V2 Factory that enables trading between two ERC20 tokens.

### Pool

Liquidity within a pair is pooled across all liquidity providers.
Liquidity within a pair is aggregated from 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.
A liquidity provider deposits an equivalent value of two ERC20 tokens into a pair’s liquidity pool. 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 Uniswap this is the ratio of the two ERC20 token reserves.
TThe midpoint between the buy and sell prices of tokens at a given moment.

### 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.
The difference in price for a trading pair between transaction submission and execution.

### Core

Smart contracts that are essential for Uniswap to exist. Upgrading to a new version of core would require a liquidity migration.
Smart contracts that form the essential infrastructure of Uniswap. Upgrading to a new version of core would require a liquidity migration.

### Periphery

External smart contracts that are useful, but not required for Uniswap to exist. New periphery contracts can always be deployed without migrating liquidity.
External smart contracts that enhance Uniswap’s functionality but are not essential for its operation.

### Flash swap

A trade that uses the tokens being purchased before paying for them.
A trade where tokens are borrowed and used before payment is made, all within a single transaction.

### `x * y = k`

The constant product formula.
The constant product formula underlying Uniswap’s automated market-making mechanism.

### Invariant

The "k" value in the constant product formula
The constant value ('k') in the constant product formula, which remains unchanged during trades.