AlphaX
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Glossary

Arbitrage -

The act of exploiting the price differences of an asset at different markets to make profit.

Bearish -

A belief towards an asset that the price will have a downward trajectory.

Bullish -

A belief towards an asset that the price will have a upward trajectory.

Composable -

Being able to interact with protocols in a permissionless way

Derivatives on-chain -

Refers to the transaction for trading derivatives to occur on blockchain, instead of off-chain (transactions occurring on a cryptocurrency network that move the value outside of the blockchain).

Futures trading -

It is referred to the buying or selling of a contract that represents the agreement to buy/sell the value of the specific asset at a future date.

Leverage tokens -

A type of derivative product that gives you leveraged exposure to the underlying asset.

Liquidation -

The point at which your positions end. In AlphaX, it refers to when the Strike Tokens you are holding in the position are turned into USDC. In this case, you will be at liquidation when the asset price is at 1.2x.

Market Price -

Market price is the current price on the market (i.e. liquidity pool) that the token will be sold/bought at.

Minters/minting -

Minting refers to the action of generating a new token. In AlphaX, it refers to generating a new pair of LONG and SHORT tokens with USDC.

Oracle Price -

The oracle price is the price calculated from the aggregated average price feed given from the data oracle.

Peg -

Means to tie the value of your asset to something else that represents equal value.

Perpetual swaps -

Similar to future trading that allows you to buy or sell the value of the underlying asset at a certain price in the future but perpetual swaps have no expiration date on your position.

Price Ceiling -

In this case, the price ceiling represents the highest price users think the asset will be.

Price Floor -

In this case, the price floor represents the lowest price users think the asset will be.

Redeemers/redeeming -

Redeeming refers to the action of destroying existing tokens in the market. In AlphaX, it refers to providing a pair of LONG and SHORT tokens then getting back USDC.
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