Glossary of Terms
Definitions for key terms and concepts used across the KalshChain platform and documentation.
- AMM
- Automated Market Maker. A protocol that manages liquidity and pricing using an algorithm (CPMM) instead of a traditional order book.
- CPMM
- Constant Product Market Maker (x * y = k). The specific AMM formula used by KalshChain to price prediction market shares.
- Liquidity Provider (LP)
- A user who deposits funds (base currency) into a market's liquidity pool, earning trading fees in return for providing trade execution capacity.
- Oracle
- A decentralized data source used to verify and confirm the outcome of a market event, allowing the smart contract to settle the market.
- Price Slippage (Price Impact)
- The difference between the expected price of a trade and the executed price, typically occurring in large trades that significantly alter the liquidity pool's reserves.
- Share
- A token representing one side of a prediction market outcome (YES or NO). Shares are priced between 0.00 and 1.00 SOL and settle at 1.00 SOL if they represent the winning outcome.
- USDC
- USD Coin. The stablecoin used as the base currency for all trading and liquidity provision on the KalshChain platform.