> For the complete documentation index, see [llms.txt](https://docs.koalaswap.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.koalaswap.app/glossary.md). # Glossary ### Automated Market Maker[​](https://docs.uniswap.org/concepts/glossary#automated-market-maker) An automated market maker is a smart contract on Ethereum that holds liquidity reserves. Users can trade against these reserves at prices determined by a fixed formula. Anyone may contribute liquidity to these smart contracts, earning pro-rata trading fees in return. ### Asset[​](https://docs.uniswap.org/concepts/glossary#asset) While a digital asset can take many forms, the Koalswap Protocol supports ERC-20 token pairs, and represents a position in the form of an NFT (ERC-721). ### Concentrated Liquidity[​](https://docs.uniswap.org/concepts/glossary#concentrated-liquidity) Liquidity that is allocated within a determined price range. ### Core[​](https://docs.uniswap.org/concepts/glossary#core) Smart contracts that are considered foundational, and are essential for KoalaSwap to exist. Upgrading to a new version of core would require deploying an entirely new set of smart contracts on Ethereum and would be considered a new version of the KoalaSwap Protocol. ### Factory[​](https://docs.uniswap.org/concepts/glossary#factory) A smart contract that deploys a unique smart contract for any ERC20/ERC20 trading pair. ### Flash Swap[​](https://docs.uniswap.org/concepts/glossary#flash-swap) A trade that uses the tokens purchased before paying for them. ### Invariant[​](https://docs.uniswap.org/concepts/glossary#invariant) The “k” value in the constant product formula X\*Y=K ### Liquidity Provider / "LP"[​](https://docs.uniswap.org/concepts/glossary#liquidity-provider--lp) A liquidity provider is someone who deposits ERC20 tokens into a given liquidity pool. Liquidity providers take on price risk and are compensated with trading fees. ### Liquidity[​](https://docs.uniswap.org/concepts/glossary#liquidity) Digital assets that are stored in a KoalaSwap pool contract, and are able to be traded against by traders. ### Mid Price[​](https://docs.uniswap.org/concepts/glossary#mid-price) The price between the available buy and sell prices.\ \ Observation[​](https://docs.uniswap.org/concepts/glossary#observation) An instance of historical price and liquidity data of a given pair. ### Periphery[​](https://docs.uniswap.org/concepts/glossary#periphery) External smart contracts that are useful, but not required for KoalaSwap to exist. New periphery contracts can always be deployed without migrating liquidity. ### Pool[​](https://docs.uniswap.org/concepts/glossary#pool) A contract deployed by the V3 factory that pairs two ERC-20 assets. Different pools may have different fees despite containing the same token pair. Pools were previously called Pairs before the introduction of multiple fee options. ### Position[​](https://docs.uniswap.org/concepts/glossary#position) An instance of liquidity defined by upper and lower tick. And the amount of liquidity contained therein. ### Price Impact[​](https://docs.uniswap.org/concepts/glossary#price-impact) The difference between the mid-price and the execution price of a trade. ### Protocol Fees[​](https://docs.uniswap.org/concepts/glossary#protocol-fees) Fees that are rewarded to the protocol itself, rather than to liquidity providers. ### Range[​](https://docs.uniswap.org/concepts/glossary#range) Any interval between two ticks of any distance. ### Range Order[​](https://docs.uniswap.org/concepts/glossary#range-order) An approximation of a limit order, in which a single asset is provided as liquidity across a specified range, and is continuously swapped to the destination address as the spot price crosses the range. ### Reserves[​](https://docs.uniswap.org/concepts/glossary#reserves) The liquidity available within a pair. This was more commonly referenced before concentrated liquidity was introduced. ### Slippage[​](https://docs.uniswap.org/concepts/glossary#slippage) The amount the price moves in a trading pair between when a transaction is submitted and when it is executed. ### Spot Price[​](https://docs.uniswap.org/concepts/glossary#spot-price) The current price of a token relative to another within a given pair. ### Swap Fees[​](https://docs.uniswap.org/concepts/glossary#swap-fees) The fees collected upon swapping which are rewarded to liquidity providers. ### Tick Interval[​](https://docs.uniswap.org/concepts/glossary#tick-interval) The price space between two nearest ticks. ### Tick[​](https://docs.uniswap.org/concepts/glossary#tick) The boundaries between discrete areas in price space.