Glossary

This glossary provides definitions of key terms and concepts used in Pangolin Elixir. Familiarizing yourself with these terms will help you better understand the platform and navigate its functionalities.

• Decentralized Exchange (DEX): A decentralized exchange is a platform that enables users to trade digital assets directly with one another without relying on intermediaries. Transactions on a DEX occur on the blockchain, providing increased transparency and control over assets.

• Liquidity: Liquidity refers to the availability and depth of trading assets in a market or trading pool. High liquidity ensures that assets can be bought or sold quickly without causing significant price fluctuations.

• Liquidity Provider (LP): A liquidity provider is an individual or entity that contributes funds to a liquidity pool, enabling others to trade assets on the platform. LPs earn fees and rewards for providing liquidity to the DEX.

• Liquidity Pool: A liquidity pool is a smart contract that holds a reserve of tokens provided by LPs. It allows users to trade assets based on the available liquidity within the pool. The automated market maker (AMM) algorithm determines the prices for trades within the pool.

• Price Range: In Pangolin Elixir, the price range refers to the specific interval within which LPs provide liquidity. LPs can choose the range based on their preferences and market conditions.

• Slippage: Slippage is the difference between the expected price of a trade and the executed price. It occurs due to changes in the market between the time a trade is initiated and the time it is executed.

• Price Impact: Price impact represents the effect of a trade on the price of an asset. It quantifies how much the price of the asset moves as a result of a trade's execution.

• In-Range Farming: In-Range Farming is a mechanism in Pangolin Elixir that rewards LPs for providing liquidity within specific price ranges. LPs earn additional tokens as farming rewards based on the concentration and depth of liquidity they provide within the predefined range.

• Trading Pair: A trading pair consists of two assets that can be exchanged with each other on the platform. For example, in the trading pair ETH/USDT, ETH is the base currency, and USDT is the quote currency.

• Gas Fees: Gas fees are the transaction fees paid to miners or validators for processing and validating transactions on the blockchain. They are denoted in a cryptocurrency, such as ETH, and can vary based on network congestion and transaction complexity.

This glossary provides a foundation for understanding the key terms and concepts used in Pangolin Elixir. Refer to this section whenever you come across unfamiliar terms while using the platform.