Glossary

Definitions for the terms and metrics you will see across Metrix. Skim it once, then come back to look things up.

Core concepts

Liquidity pool. A smart contract holding a pair of assets that traders swap against. People who deposit assets into the pool are liquidity providers and earn a share of the trading fees.

Liquidity provider (LP). Anyone who deposits assets into a pool to earn fees. Your stake is represented by a position.

Concentrated liquidity. A model where you provide liquidity within a chosen price range instead of across all prices. Concentrating into a tighter range earns more fees while price stays inside it, but earns nothing once price leaves the range.

Price range. The lower and upper price bounds of a concentrated liquidity position. The position is active and earning only while price is inside this range.

Tick. The discrete price steps an exchange uses to define ranges. Range bounds snap to ticks.

Lending market. A protocol where you supply an asset to earn interest, or borrow against collateral. Returns depend on supply and borrow rates, which move with usage.

Returns and risk

Impermanent loss. The difference in value between providing liquidity and simply holding the same assets, caused by price moving apart. It becomes a realized loss only when you withdraw. It is the main risk to weigh against fee income.

APR. Annual percentage rate, the annualized return without compounding.

APY. Annual percentage yield, the annualized return with compounding included. APY is higher than APR for the same underlying rate.

Fees earned. The trading fees your liquidity position has accrued. For concentrated liquidity, you earn fees only while price is within your range.

Versus holding. A comparison between a position and simply holding the underlying assets, used to judge whether providing liquidity was worthwhile.

Exposure. How your position value is weighted across the assets it holds.

Market metrics

TVL. Total value locked, the total value of assets deposited in a pool, protocol, or market.

Volume. The value traded through a pool over a period. More volume generally means more fees for liquidity providers.

Market cap. The total value of a token's circulating supply.

Fear and greed. A sentiment indicator that summarizes whether the market is fearful or greedy.

Altcoin season. An indicator of whether altcoins are broadly outperforming Bitcoin.

Metrix features

Hedging. Offsetting the price risk of a position so its value is less sensitive to market moves.

Price alert. A notification Metrix sends when an asset's price crosses a level you set. Useful for knowing when a concentrated position is about to leave its range.

Wallet group. Several wallet addresses combined and viewed as one.

Glossary

Definitions for the terms and metrics you will see across Metrix. Skim it once, then come back to look things up.

Core concepts

Liquidity pool. A smart contract holding a pair of assets that traders swap against. People who deposit assets into the pool are liquidity providers and earn a share of the trading fees.

Liquidity provider (LP). Anyone who deposits assets into a pool to earn fees. Your stake is represented by a position.

Price range. The lower and upper price bounds of a concentrated liquidity position. The position is active and earning only while price is inside this range.

Tick. The discrete price steps an exchange uses to define ranges. Range bounds snap to ticks.

Lending market. A protocol where you supply an asset to earn interest, or borrow against collateral. Returns depend on supply and borrow rates, which move with usage.

Returns and risk

APR. Annual percentage rate, the annualized return without compounding.

APY. Annual percentage yield, the annualized return with compounding included. APY is higher than APR for the same underlying rate.

Fees earned. The trading fees your liquidity position has accrued. For concentrated liquidity, you earn fees only while price is within your range.

Versus holding. A comparison between a position and simply holding the underlying assets, used to judge whether providing liquidity was worthwhile.

Exposure. How your position value is weighted across the assets it holds.

Market metrics

TVL. Total value locked, the total value of assets deposited in a pool, protocol, or market.

Volume. The value traded through a pool over a period. More volume generally means more fees for liquidity providers.

Market cap. The total value of a token's circulating supply.

Fear and greed. A sentiment indicator that summarizes whether the market is fearful or greedy.

Altcoin season. An indicator of whether altcoins are broadly outperforming Bitcoin.

Metrix features

Hedging. Offsetting the price risk of a position so its value is less sensitive to market moves.

Price alert. A notification Metrix sends when an asset's price crosses a level you set. Useful for knowing when a concentrated position is about to leave its range.

Wallet group. Several wallet addresses combined and viewed as one.

Glossary

Definitions for the terms and metrics you will see across Metrix. Skim it once, then come back to look things up.

Core concepts

Liquidity pool. A smart contract holding a pair of assets that traders swap against. People who deposit assets into the pool are liquidity providers and earn a share of the trading fees.

Liquidity provider (LP). Anyone who deposits assets into a pool to earn fees. Your stake is represented by a position.

Price range. The lower and upper price bounds of a concentrated liquidity position. The position is active and earning only while price is inside this range.

Tick. The discrete price steps an exchange uses to define ranges. Range bounds snap to ticks.

Lending market. A protocol where you supply an asset to earn interest, or borrow against collateral. Returns depend on supply and borrow rates, which move with usage.

Returns and risk

APR. Annual percentage rate, the annualized return without compounding.

APY. Annual percentage yield, the annualized return with compounding included. APY is higher than APR for the same underlying rate.

Fees earned. The trading fees your liquidity position has accrued. For concentrated liquidity, you earn fees only while price is within your range.

Versus holding. A comparison between a position and simply holding the underlying assets, used to judge whether providing liquidity was worthwhile.

Exposure. How your position value is weighted across the assets it holds.

Market metrics

TVL. Total value locked, the total value of assets deposited in a pool, protocol, or market.

Volume. The value traded through a pool over a period. More volume generally means more fees for liquidity providers.

Market cap. The total value of a token's circulating supply.

Fear and greed. A sentiment indicator that summarizes whether the market is fearful or greedy.

Altcoin season. An indicator of whether altcoins are broadly outperforming Bitcoin.

Metrix features

Hedging. Offsetting the price risk of a position so its value is less sensitive to market moves.

Price alert. A notification Metrix sends when an asset's price crosses a level you set. Useful for knowing when a concentrated position is about to leave its range.

Wallet group. Several wallet addresses combined and viewed as one.