Glossary

Terms

Asset

Digital tokens used in Ramses. These include ERC-20 tokens for trading and ERC-721 NFTs that represent concentrated liquidity positions.

Automated Market Maker

A smart contract that holds liquidity reserves. Users can trade against these reserves at prices determined by a fixed formula. Anyone can contribute liquidity to earn fees, emissions, and liquidity incentives.

Active Bin

The DLMM price bin where swaps currently occur. A swap moves to the next available bin after consuming the liquidity available at the active price.

Bin

A discrete price level in a DLMM pool. Each bin holds its own liquidity and LP shares. Learn more here.

Concentrated Liquidity

A liquidity provision mechanism where providers can specify custom price ranges for their assets. Learn more here.

Discretized Liquidity Market Maker / "DLMM"

An AMM design that organizes liquidity into fixed-price bins. LPs select a range of bins, while swaps move across the available bins as needed. Learn more here.

Core

Essential smart contracts for Ramses' functionality. Contracts that handle critical functions like swaps, liquidity management, and fee collection. View the core contracts here.

ERC20

Fungible token standard.

Factory

The smart contracts responsible for deploying new trading pairs and pools.

Gauge

A smart contract that distributes rewards to LP tokens based on voting distribution.

Invariant

The constant k in the volatile x*y = k and stable x^3*y + x*y^3 = k formulas. Learn more here.

Liquidity

Assets in Ramses pools/pairs available for trading.

Liquidity Provider / "LP"

Users who pair and pool ERC20 tokens. Liquidity providers assume price risk and are compensated with emissions and liquidity incentives.

Pair

A smart contract created by Ramses' V2 factory that enables ERC20 trading. Learn more

Periphery

Smart contracts that interact with Ramses' core contracts to provide additional functionality. These include routers, position managers, and other utility contracts. View the periphery contracts here.

Pool

A smart contract created by Ramses' V3 factory that enables trading between two ERC20 tokens. Each token pair can have multiple pools with different fee tiers, which adjust dynamically based on market volatility. Learn more here.

Position

A liquidity allocation in a pool. Concentrated liquidity positions are represented as NFTs, while DLMM positions consist of fungible shares in one or more bins. Learn about concentrated liquidity or DLMM positions.

Price Impact

The effect a trade has on an asset's price due to the size of the order relative to pool liquidity. Larger trades typically result in higher price impact.

Range

An interval between two ticks of any distance.

Range Order

Limit order approximation using single-asset liquidity provision. Learn more here.

Slippage

Price change between trade submission and execution.

Spot Price

The current exchange rate between two assets in a pool, calculated from the pool's reserves before any trade occurs.

Swap Curve (Uni-v2 or Correlated)

The AMM formula that determines trade prices in pairs. Ramses uses two curves: volatile (x*y = k) for standard token pairs, and stable (x^3*y + x*y^3 = k) for correlated assets. Learn more here.

Swap Fees

Trading fees charged by a pool. By default, gauged pools direct 100% of swap fees to xRAM voters for that pool; ungauged pools retain 95% for liquidity providers and direct 5% to the protocol/Sarcophagus. Fee rates may vary algorithmically.

Tick

Discrete boundaries in price space.

Vote Incentive

Rewards offered to xRAM holders to incentivize voting on gauges. These incentives help direct emissions to desired liquidity pools.