Glossary

This glossary explains the most common terms you’ll encounter when using SNAP.

Core roles

• LP (Liquidity Provider): A user who deposits tokens into a pool to enable trading and earn fees or rewards.

• veSNAP: A vote-escrowed token created by locking SNAP. It grants governance power and a share of emissions.

Pools and voting

• Gauge: A system that directs emissions to liquidity pools based on votes.

• Bribe: Extra incentives offered to attract votes to a pool.

• Epoch: The fixed weekly cycle for voting, emissions, and reward distribution.

Liquidity mechanics

• Range: The price band where a concentrated liquidity position is active.

• Impermanent Loss: The potential loss from providing liquidity compared to simply holding the tokens, caused by price divergence.

• Dynamic Fees: Pool fees that adjust automatically based on market volatility.

Trading

• Slippage: The difference between the expected price and the executed price of a trade.

• TWAP (Time-Weighted Average Price): An order type that spreads execution across time to reduce price impact.

Governance & rewards

• Rebase: An adjustment to vote-escrowed balances, sometimes capped to prevent excessive expansion.