📖Glossary
Hyperswap Glossary
A
AMM (Automated Market Maker)
A mechanism that powers decentralized exchanges by enabling trades directly between users through liquidity pools instead of traditional order books. Examples include Hyperswap.
API (Application Programming Interface)
A set of functions and protocols that allow applications to communicate with the Hyperswap platform for tasks like querying prices or executing trades programmatically.
APR (Annual Percentage Rate)
The annualized interest rate that does not consider the effects of compounding. It reflects the straightforward year-to-year percentage return or cost of an investment or loan.
APY (Annual Percentage Yield)
The effective annual return on an investment, accounting for the effects of compounding interest. Compounding means that earned interest is periodically added to the principal, increasing the balance on which future interest is calculated.
The APY is calculated using the formula:
Where:
• r : Periodic interest rate
• n : Number of compounding periods in a year
For example, in DeFi, APY is often used to describe returns on staking or liquidity provision, considering the reinvestment of rewards.
B
Blockchain
A decentralized digital ledger where transactions are recorded chronologically and publicly. Hyperswap operates on the HyperEVM blockchain.
Burning
The process of permanently removing tokens from circulation to reduce supply, often to increase scarcity and value.
C
Contract Address
A unique identifier on the blockchain that specifies the location of a smart contract. For tokens, the contract address is where the token’s functionality and the management of holders’ balances are implemented.
Concentrated Liquidity
An AMM feature enabling liquidity providers to allocate their liquidity to specific price ranges of an asset pair. This approach enhances capital efficiency by focusing liquidity where most trading occurs. It is one of the main principles of V3.
Conversion Ratio
The rate at which one token or currency can be exchanged for another. It represents the proportional value between two assets during a swap or conversion.
Cross-Chain
A system enabling transactions or data exchange between two or more blockchains. Hyperswap supports cross-chain swaps, allowing users to trade assets across different networks seamlessly.
D
dApp (Decentralized application)
Decentralized Web3 software application that normally runs on a blockchain.
DeFi (Decentralized Finance)
A financial ecosystem built on blockchain technology that eliminates the need for intermediaries like banks, enabling peer-to-peer financial services such as lending, borrowing, and trading.
DEX (Decentralized Exchange)
A platform for trading cryptocurrencies directly between users without relying on a centralized authority. Hyperswap is a DEX built on the HyperEVM blockchain.
DAO (Decentralized Autonomous Organization)
A community-led organization governed by smart contracts, where decisions are made collectively by token holders.
E
Emission Rate
The rate at which new tokens or coins are generated and distributed, typically governed by the rules of the blockchain’s consensus mechanism.
Elastic Supply Token
A type of cryptocurrency with a supply that adjusts automatically based on predefined conditions, such as changes in demand, to help maintain price stability.
ERC-20
A widely used technical standard for creating fungible tokens on the Ethereum blockchain, allowing uniformity and compatibility across Ethereum-based applications.
ERC-721
A technical standard for creating non-fungible tokens (NFTs) on the Ethereum blockchain. Unlike fungible tokens, each ERC-721 token is unique and can hold a different value from others within the same smart contract.
G
Gas Fees
The transaction fees paid to blockchain validators for processing and confirming operations on the network. These fees incentivize validators and cover the computational cost of executing smart contracts or transactions.
Genesis Pools
Special liquidity pools created for early adopters, designed to help establish initial liquidity for Hyperswap prior to the launch of the HSPX token.
H
HSPX Token
The utility token of the Hyperswap ecosystem. It can be staked, used for governance, or locked to gain additional benefits within the platform.
xHSPX Token
A yield-boosting token obtained by locking HSPX. It grants users enhanced rewards and additional governance rights within the Hyperswap ecosystem.
L
Liquidity
The availability of assets in a trading pool, ensuring smooth and efficient trade execution. High liquidity reduces slippage.
Liquidity Pools
Smart contract-based pools where users deposit cryptocurrency pairs to enable trading on an AMM. Liquidity providers earn fees from trades executed in the pool.
LP Token & Liquidity Providers
A Liquidity Pool (LP) is a reserve of funds contributed by users to facilitate trading on decentralized platforms. Liquidity Providers deposit their assets into these pools, enabling smooth transactions and reducing price volatility. In return, they receive Liquidity Provider (LP) tokens, which represent their proportional share of the pool and entitle them to a portion of the trading fees generated.
M
Multisig Wallet
A cryptocurrency wallet that requires multiple private keys, typically from different parties, to approve and execute a transaction. This enhances security and enables shared control over funds.
Mainnet
The fully operational and live version of a blockchain, where actual transactions and activities occur, as opposed to a testnet used for development and testing.
Market Cap (Market Capitalization)
The total value of a cryptocurrency, calculated by multiplying its current market price by the circulating supply. It serves as a metric for assessing the relative size and popularity of a token or coin.
O
On-Chain
Refers to transactions or activities that are processed and recorded directly on the blockchain network. This contrasts with off-chain operations, which are executed outside the primary blockchain, often using sidechains or Layer-2 solutions.
Oracles
Services that bridge blockchain networks with external data sources, providing smart contracts with real-world information like asset prices or other off-chain data. This allows blockchains to react to events beyond their native environment.
S
Slippage
The difference between the expected price of a trade and the actual execution price. High slippage occurs in low-liquidity pools or during large transactions.
Smart Contract
A self-executing contract with terms directly written in code, used to automate processes like trades or staking on Hyperswap.
Stablecoin
A cryptocurrency designed to maintain a stable value by being pegged to a stable asset, such as fiat currencies (e.g., the US Dollar) or commodities. Stablecoins provide price stability while retaining the benefits of blockchain technology.
Stable Pair
A pair of tokens with closely correlated prices, often designed to maintain a near 1:1 exchange ratio. These pairs are commonly used for stablecoin trading and minimizing slippage in swaps.
Staking
The process of locking tokens in a protocol to earn rewards, often as part of a yield farming or governance mechanism. Staking supports the network’s operation while providing users with passive income.
Swap
A transaction that allows you to instantly exchange one cryptocurrency for another without the need to convert to fiat currency first. Swaps are commonly facilitated by DEXs like Hyperswap.
T
Testnet
A testing environment used to trial new products, projects, or potential enhancements to existing solutions before deployment on the main network.
Tokenomics
The economic model and design of a cryptocurrency, including its supply, distribution, and utility within the ecosystem.
Trading Fee
A small fee charged on each trade executed on Hyperswap, typically distributed among liquidity providers or used for platform development.
TGE (Token Generation Event)
An event during which a project’s tokens are minted and distributed to participants. This often occurs as part of a fundraising initiative, such as an Initial Coin Offering (ICO) or an Initial DEX Offering (IDO).
TVL (Total Value Locked)
A metric that quantifies the total value of assets deposited in a DeFi protocol, including liquidity pools, staking, and lending platforms. It serves as an indicator of the protocol’s adoption and activity level.
U
Uni V2 & V3
A reference to Uniswap V2 and Uniswap V3
Y
Yield Farming
A DeFi activity where users earn rewards by providing liquidity to pools or staking tokens. Hyperswap offers yield farming opportunities for users to earn additional rewards.
Yield
The earnings generated from an investment, such as staking or providing liquidity.
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