Glossary
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Automated market maker
A smart contract that holds on-chain liquidity reserves and prices trades algorithmically, without an order book.
Constant product formula
The pricing invariant used by CenturionDEX v2. See x * y = k.
ERC20
The standard interface for fungible tokens on Ethereum. CenturionDEX v2 supports all conforming ERC20 implementations.
Factory
A singleton contract that deploys a unique pair contract for every ERC20/ERC20 token combination.
Pair
A smart contract deployed by the Factory that enables trading between two ERC20 tokens and holds their pooled reserves.
Pool
The combined reserves of a pair, contributed by all liquidity providers.
Liquidity provider / LP
An address that deposits an equivalent value of two ERC20 tokens into a pair's pool, receiving pool tokens in return. LPs bear price risk and earn a share of trading fees.
Mid price
The ratio of the two ERC20 reserves in a pair — the price between what a buyer pays and a seller receives before any trade executes.
Price impact
The difference between the mid price and the execution price of a given trade, caused by the trade's size relative to pool reserves.
Slippage
The price movement that occurs between transaction submission and execution, typically caused by other trades landing first.
Core
The immutable smart contracts essential to CenturionDEX v2 (Factory, Pair). Upgrading core requires migrating liquidity to new contracts.
Periphery
Non-privileged smart contracts (Router, Library) that provide convenience wrappers around core. New periphery contracts can be deployed without migrating liquidity.
Flash swap
A swap in which the caller receives output tokens before providing payment, settling within the same transaction.
x * y = k
The constant product formula: the product of a pair's two reserves must remain constant (before fees) across every trade.
Invariant
The value k in the constant product formula — unchanged by any single trade.