Glossary
A
AMM (Automated Market Maker) A smart contract that holds token reserves and enables trading without an order book. Prices are determined algorithmically based on the ratio of reserves.C
Concentrated Liquidity V3 feature where LPs provide liquidity within a specific price range instead of across all prices. Improves capital efficiency. Constant Product Formula The equationx * y = k used by V2 pools, where x and y are token reserves and k is a constant that only increases from fees.
D
Deadline A Unix timestamp after which a transaction automatically reverts. Protects users from delayed execution at stale prices. dexAddress The token address used for DEX operations. For native KAS, this is the WKAS contract address. For ERC-20 tokens, it equals the token’s contract address.E
Exact Input A trade type where the user specifies the input amount and the protocol calculates the output. “I want to sell exactly X tokens.” Exact Output A trade type where the user specifies the desired output amount and the protocol calculates the required input. “I want to buy exactly Y tokens.”F
Fee Tier One of four selectable fee rates for V3 pools: 0.01%, 0.05%, 0.3%, or 1%.I
Impermanent Loss The loss in value that LPs experience when the relative price of pooled tokens changes compared to simply holding them. Called “impermanent” because it reverses if prices return to the original ratio.K
KAS The native currency of the Kasplex blockchain (18 decimals). Used for gas fees and value transfer. Wrapped as WKAS for DEX operations.L
Liquidity In V3, a measure of the depth a position provides. Higher liquidity means less price impact for swaps through that range. Denoted asL.
LP (Liquidity Provider)
A user who deposits tokens into a pool to enable trading and earn fees.
LP Token
A fungible ERC-20 token (V2) representing a share of a pool’s reserves.
M
Multi-hop A swap routed through multiple pools. For example, A → B → C uses two hops.N
NFT Position An ERC-721 token (V3) representing a unique liquidity position with specific tick range and liquidity amount.P
Permit2 A shared token approval contract that manages allowances with expiration and per-spender scoping. Pool A smart contract holding reserves of two tokens. V2 pools use constant product; V3 pools support concentrated liquidity. Price Impact The change in price caused by a trade. Larger trades relative to pool reserves cause greater price impact.S
Slippage The difference between the expected price and the actual execution price. Slippage tolerance sets the maximum acceptable deviation. sqrtPriceX96 V3’s on-chain price encoding: the square root of the price multiplied by 2^96. Enables efficient fixed-point arithmetic.T
Tick A discrete price point in V3. Each ticki represents price 1.0001^i. Positions must align to tick spacing boundaries.
Tick Spacing
The minimum distance between usable ticks, determined by fee tier. For example, a 0.3% fee pool has tick spacing of 60.