📜Glossary
AMM (Automated Market Maker): A type of decentralized exchange protocol that relies on a mathematical formula to price assets.
AMM LPs (Automated Market Maker Liquidity Providers): Participants in a liquidity pool who provide collateral to facilitate trading and earn a share of transaction fees.
Basis Points (bps): A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is 1/100th of a percent.
Bid Ask Floor Price: A metric calculated by averaging the highest bid and the lowest ask prices after checking for manipulation.
Central Limit Order Book (CLOB): A centralized database of buy and sell orders organized by price level that matches trades.
Close Position: The action taken to exit a trade by performing the opposite trade of the one that opened the position.
Conditional Order: An order to buy or sell an asset under predefined conditions set by the trader.
Decentralized Limit Order Book (DLOB): A ledger of buy and sell orders waiting to be matched on a decentralized exchange.
Direct Order Matching: The process of connecting buy and sell orders directly without the need for an intermediary.
Epoch: A time frame within the nftperp platform during which rewards are calculated and distributed.
Floor Price: The lowest price at which a piece of an NFT collection is currently available for sale.
Funding Payments: Regular payments made between traders based on the difference between perpetual contract markets and spot prices.
Funding Rate: The rate at which funding payments are calculated, often expressed as a percentage of the position size.
Fusion AMM (Automated Market Maker): A hybrid order matching system that combines an AMM system and a DLOB.
Index Price: The spot price of the underlying asset, which can be derived from the asset's average price across major exchanges.
Insurance Fund: A reserve pool that accumulates a portion of trading fees to cover unexpected losses.
Keepers: Network participants who execute conditional orders once predetermined conditions are met.
Leverage: The use of borrowed capital to increase the potential return of an investment.
Liquidity Pool: A collection of funds locked in a smart contract that provides liquidity for trading on decentralized exchanges.
Liquidity Provisioning: The act of contributing crypto assets to liquidity pools to earn rewards or yield.
Liquidation: The process of closing out a position that fails to meet margin requirements.
Liquidation Price: The price at which a position is valued for the purpose of liquidation.
Listing DAO Council: A group within the nftperpDAO responsible for overseeing the asset listing process.
Lock-Up Period: A time during which contributions to a fund cannot be withdrawn.
Long (Buy): Taking a position that profits if the price of the underlying asset goes up.
Maker Fees: Fees earned by market makers as a percentage of the trading volume they facilitate.
Makers: Traders who provide liquidity to the market by placing orders that build up the order book.
Mafia Nuts: An NFT collection associated with the nftperp platform.
Market Depth: A measure of the market’s ability to sustain large market orders without impacting the price of the asset.
Market Order: An order to immediately buy or sell an asset at the current market price.
Matching Engine: The part of a trading platform that pairs buy and sell orders.
Mid-Price: The price halfway between the best available ask price and the best available bid price in the order book.
nftperpDAO: The Decentralized Autonomous Organization governing the nftperp protocol.
NIP (nftperp Improvement Proposal): A formal proposal made to suggest improvements to the nftperp platform.
Open Position: To initiate a trade with the intention of closing it at a later time for profit or loss.
Order Book Contribution: A factor in reward calculation based on the quality of a market maker's order book.
Pair: The combination of two different types of assets that can be traded for each other.
Perpetual Futures Contract: A derivatives contract that allows traders to speculate on the price movement of an asset without any expiration date.
Position Size: The amount of an asset involved in a trade.
Position Transfer Liquidation: A liquidation approach where the liquidatable position is transferred to a liquidator at a discount.
P&L (Profit & Loss): The total amount of money gained or lost on an investment or trade.
Price Convergence: The process by which the mark price is encouraged to align with the index price.
Quorum: The minimum number of votes required for a DAO decision to be valid.
Sales Floor Price: A price metric determined by applying a weighted calculation on recent trades after cleaning data from outliers.
Short (Sell): Taking a position that profits if the price of the underlying asset goes down.
Slippage: The difference between the expected price of a trade and the price at which it is executed.
Snapshot Proposal: A voting mechanism used by DAOs that allows token holders to vote off-chain.
Spread Profit: The profit that market makers earn from the difference between bid and ask prices.
Staking: The act of locking up an asset to receive rewards or earn interest.
Stop-Loss Order: A conditional order designed to limit an investor’s loss on a position.
Take-Profit Order: An order placed to sell a security when it reaches a certain price.
Takers: Traders who remove liquidity from the market by matching with existing orders.
Tick: In the context of Uniswap V3 and nftperp's DLOB, a tick is a designated price level at which orders can be inserted or removed from the order book.
True Floor Price: An average price calculation representing the TWAP of NFT trades after outlier filtering.
Uptime: A measure of how consistently a market maker provides liquidity.
Volume Contribution: A factor in the reward calculation for market makers, based on trading volume.
$vNFTP (Voucher NFTP): A token that signifies a user’s future claim to $NFTP tokens in the nftperp DAO.
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