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Glossary

AMM​

Automated Market Maker. A rule which defines the inputs and outputs of exchanging two or more assets.

Portfolio​

Two or more assets combined into a single instrument.

Replication​

Mimicking the value of another singular instrument at infinitesimal points in time by using a portfolio of different instruments. For example, holding four quarters instead of a dollar bill is a replicating portfolio for $1.

Curve​

Mathematical rule that governs the price of swapping tokens in the pools.

Pool​

In RMM Protocol, a pool is a two token pair with a rule that defines how much each of the tokens can be swapped for one another.

LP​

Loaded term, can mean the actor Liquidity Provider, or the financial asset Liquidity Position.

Delta​

The financial term for an option's change in value with respect to a 1% change in the underlying asset's value.

Gamma​

Financial term for an option's change in delta with respect to a 1% change in the underlying asset's value.

Covered Call​

A position in the underlying asset and a short call option on the underlying asset.