Glossary
Last updated
Last updated
Term
Definition
Automated Market Maker (AMM)
A type of decentralized exchange (DEX) protocol that relies on a mathematical formula to price assets, rather than using order books like traditional exchanges. AMMs allow for automated trading of digital assets through liquidity pools.
Chainlink Keepers
A decentralized service provided by Chainlink that automates smart contract functions, ensuring reliable and efficient on-chain task execution. In the context of ICHI, Chainlink Keepers continuously monitor market conditions and dynamically adjust liquidity positions.
Concentrated Liquidity
A feature that allows liquidity providers to specify a price range within which their liquidity is active. This approach focuses liquidity around the current price, making it more capital efficient and increasing the potential for earning trading fees.
Impermanent Loss
A temporary loss of funds experienced by liquidity providers due to the volatility in the price of tokens in a liquidity pool. This loss occurs when the price ratio of the deposited tokens changes compared to their initial ratio.
ICHI Vaults
Specialized smart contracts that enable single-token, automated liquidity provision into various AMMs. ICHI Vaults optimize liquidity management by dynamically adjusting positions based on market conditions to maximize yields and minimize risks.
Internal Rate of Return (IRR)
A metric used to evaluate the profitability of an investment. In the context of ICHI, the IRR represents the performance of a vault from its inception, calculated in terms of the deposited asset.
Liquidity Depth
The measure of the market's ability to absorb large orders without significant impact on the token's price. ICHI enhances liquidity depth by providing substantial liquidity support with extractable bluechip price backing.
Liquidity Provider (LP)
An individual or entity that supplies tokens to a liquidity pool in a decentralized exchange (DEX) or AMM. In return, LPs earn a portion of the trading fees generated from the pool.
Liquidity Provider (LP) Tokens
Tokens received by liquidity providers in exchange for their contribution to a liquidity pool. These tokens represent the provider's share in the pool and can be redeemed for the underlying assets plus any accrued fees.
SingleSided Liquidity Pools
A type of liquidity pool that allows users to deposit only one type of token, rather than requiring a pair of tokens. This simplifies the process of providing liquidity and reduces entry barriers.
Smart Contracts
Selfexecuting contracts with the terms of the agreement directly written into code. They automatically enforce and execute the terms of the contract when predetermined conditions are met, reducing the need for intermediaries.
Token Generation Event (TGE)
An event where a new cryptocurrency token is created and distributed to investors or the public. TGEs are often used to raise funds for new blockchain projects.
Total Value Locked (TVL)
The total amount of assets deposited in a DeFi protocol. TVL is often used as a measure of the protocol's popularity and the trust investors have in it.
Yield Farming
The practice of earning rewards by staking or lending cryptocurrencies within DeFi protocols. Yield farming involves providing liquidity to pools and earning interest, fees, or additional tokens as rewards.
Yield Optimization
The process of maximizing returns on an investment by strategically managing and reallocating assets. In the context of ICHI, yield optimization involves dynamically adjusting liquidity positions to maximize trading fees and minimize risks.
Blue Chip Cryptocurrency
A well established and financially stable cryptocurrency with a large market capitalization, considered a safe and reliable investment. Examples include Bitcoin (BTC) and Ethereum (ETH).
Staking
The process of locking up cryptocurrency tokens in a wallet to support the operations of a blockchain network, such as validating transactions. Stakers are rewarded with additional tokens for their participation.
TWAP (TimeWeighted Average Price)
A trading strategy that divides a large order into several smaller trades, executed at regular intervals over a specified period. TWAP aims to minimize the impact on the market and achieve a fair average price.
Automated Risk Management
A system that uses algorithms to monitor and adjust positions based on predefined risk parameters. In the context of ICHI, automated risk management helps mitigate impermanent loss and protect against market volatility.
Decentralized Exchange (DEX)
A peer to peer platform that allows users to trade cryptocurrencies directly with one another without the need for a central authority or intermediary. DEXs operate on blockchain technology and use smart contracts to facilitate trades.
Crypto Treasury Management
The practice of managing a company's or project's cryptocurrency holdings, including investing, staking, and liquidity provision. Effective treasury management aims to maximize returns while minimizing risks.
Automation Nodes
Nodes that perform automated tasks with high reliability and accuracy, incentivized economically to maintain optimal performance. In the context of ICHI, these nodes execute liquidity pool rebalancing and other automated functions.
Extractable Blue Chip Price Support
A feature that provides liquidity depth and stability by backing token projects with well established bluechip cryptocurrencies, enhancing the token's value and market confidence.