Definitions
Definitions for the Algofi DEX.
Automated market maker (AMM): Are autonomous trading mechanisms that eliminate the need for centralized exchanges and related market-making techniques.
Decentralized Exchange: A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders
Flash Loan: A loan that is issued and fully repaid within a single group transaction.
Protocol Reserve Factor: reserves accrued by the protocol on swap and flash loan fees.
Impermanent Loss: Impermanent loss (IL) is the risk that liquidity providers take in exchange for fees they earn in liquidity pools. If IL exceeds fees earned by a user when they withdraw, it means the user has suffered negative returns compared with simply holding their tokens outside the pool.
Last modified 6mo ago