Glossary
AMM
Automated Market Maker. A rule which defines the inputs and outputs of exchanging two or more assets.
Portfolio
Two or more assets combined into a single instrument.
Replication
Mimicking the value of another singular instrument at infinitesimal points in time by using a portfolio of different instruments. For example, holding four quarters instead of a dollar bill is a replicating portfolio for $1.
Curve
Mathematical rule that governs the price of swapping tokens in the pools.
Pool
In RMM Protocol, a pool is a two token pair with a rule that defines how much each of the tokens can be swapped for one another.
LP
Loaded term, can mean the actor Liquidity Provider
, or the financial asset Liquidity Position
.
Delta
The financial term for an option's change in value with respect to a 1% change in the underlying asset's value.
Gamma
Financial term for an option's change in delta
with respect to a 1% change in the underlying asset's value.
Covered Call
A position in the underlying asset and a short call option on the underlying asset.