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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.

Aggregator

A routing system that splits trades across multiple protocols (V2, V3, V4) to minimize price impact and maximize output. AchSwap's aggregator charges a 0.1% fee.

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.

CCTP V2

The second version of Circle's Cross-Chain Transfer Protocol, used by AchSwap for cross-chain USDC bridging.

Chain ID

A unique identifier for a blockchain network (ARC Testnet: 5042002).

Concentration

In V3/V4, concentrating liquidity within a specific price range to earn more fees.


D

Deadline

The time by which a prediction market must be resolved.


E

EIP-712

A standard for typed structured data hashing and signing. Used by AchSwap's gasless relayer for permit signatures.

ERC-20

The standard for fungible tokens on Ethereum.


F

Fee Tier

The percentage of trading fees charged by a liquidity pool (V3/V4).


G

Gas

The computational work required to execute blockchain transactions.

Gasless Swap

A swap where the relayer pays the gas fee on your behalf. You sign a permit message, and the relayer submits the transaction.


H

Hook

A smart contract attached to a V4 pool that can execute custom logic at various points during swaps or liquidity operations (before/after swap, before/after modify position).


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).


N

Nonce

A unique number used once in a transaction signature to prevent replay attacks. AchSwap's gasless relayer uses timestamp-based nonces.


P

Permit2

A standard token authorization contract by Uniswap that allows gasless token approvals. Used by AchSwap's gasless swap system.

Pool

A smart contract holding tokens for trading.

Pool Manager

The singleton contract in V4 that holds all V4 pools. Unlike V2/V3 where each pool is a separate contract, all V4 pools exist within one Pool Manager.

Payout

The USDC received when redeeming winning shares or claiming refunds.


R

Relayer

A server that submits transactions on behalf of users in gasless swap mode. The relayer pays gas and is reimbursed through the transaction.

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.

Singleton

A contract architecture where all V4 pools exist within a single Pool Manager contract, reducing gas costs.

Slippage

The difference between expected and actual trade execution price.

Slippage Tolerance

The maximum price change you're willing to accept. If the market moves beyond this, the transaction reverts.

Smart Contract

Self-executing code deployed on the blockchain.

Smart Routing

The system that automatically finds the best swap path across V2, V3, and V4 pools.

Source Mask

A bitmask used by the aggregator to select which protocols to include: V2=1, V3=2, V4=4. Default is 7 (all protocols).

Swap

Exchanging one token for another.


T

Tick

The minimum price granularity in V3/V4 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.

V4

The hook-enabled singleton pool model with configurable fees and custom logic hooks.


W

Wallet

Software that stores private keys and allows signing transactions.

Wrapped Token

A token that represents another asset (e.g., wUSDC).