Glossary

Terms

Active Liquidity

Concentrated liquidity positions that remain within the active trading price range and continue to earn fees and rewards.

AMO

Algorithmic Market Operations. Contracts or mechanisms that adjust protocol parameters algorithmically based on market conditions.

Asset

Digital tokens used in Pharaoh. These include ERC-20 tokens for trading and ERC-721 NFTs that represent concentrated liquidity positions.

Automated Market Maker (AMM)

A smart contract on Avalanche C-Chain that holds liquidity reserves. Users can trade against these reserves at prices determined by a fixed formula. Anyone can contribute liquidity to earn emissions and liquidity incentives.

Burn-to-Mint

A deflationary mechanism where a portion of tokens are permanently burned when minting a new token, reducing total supply. On Pharaoh, 50% of PHAR is burned when minting xPHAR.

Concentrated Liquidity

A liquidity provision mechanism where providers can specify custom price ranges for their assets. Learn more here.

Core

Essential smart contracts for Pharaoh's functionality. Contracts that handle critical functions like swaps, liquidity management, and fee collection. View the core contracts here.

Direct Redemption

A way to exit xPHAR positions by redeeming directly back to PHAR, receiving 50% of the underlying PHAR with a 50% penalty.

DLMM (Dynamic Liquidity Market Maker)

Bin-based liquidity on Pharaoh: LPs allocate depth across discrete price bins, shape curves (Uniform, Curved, Bid-Ask), and get per-bin analytics and realized APR. Emissions use an anti-JIT rewarder on the active bin. Learn more here.

Dynamic Fees

Swap fees that adjust algorithmically based on market conditions, trading volume, and volatility rather than remaining static.

Epoch

On Pharaoh, a 7-day voting and reward cycle. Epochs reset every Thursday at 00:00 UTC.

ERC-20

Fungible token standard.

Emissions

PHAR tokens distributed to gauges and liquidity providers based on xPHAR voting decisions each epoch.

Factory

The smart contracts responsible for deploying new trading pairs and pools.

Fee Split

The distribution of swap fees between different recipients (e.g., xPHAR voters, liquidity providers, protocol) configured per pool.

Gauge

A smart contract that distributes rewards to LP tokens based on voting distribution.

Impermanent Loss

The difference in value between holding tokens separately versus providing them as liquidity in a pool, caused by price movement and trading activity.

Invariant

The k in x*y=k and x³y*y³x≥k formula. Learn more here.

Liquidity

Assets in Pharaoh pools/pairs available for trading.

Liquidity Incentive

Rewards offered directly to liquidity providers to encourage them to provide liquidity to specific pools.

Liquidity Provider (LP)

Users who pair and pool ERC-20 tokens. Liquidity providers assume price risk and are compensated with emissions and liquidity incentives.

LVR

Loss Versus Rebalancing. The cost incurred by liquidity providers due to not continuously rebalancing their concentrated liquidity positions as prices move.

Out-of-Range Liquidity

A concentrated liquidity position where the current pool price has moved outside the specified price range, no longer earning fees.

p33

The liquid-staked version of xPHAR. p33 automates voting and reward claims while allowing free trading on secondary markets.

Pair

A smart contract created by Pharaoh's V2 factory that enables ERC-20 trading. Learn more

Periphery

Smart contracts that interact with Pharaoh's core contracts to provide additional functionality. These include routers, position managers, and other utility contracts. View the periphery contracts here.

PHAR

Pharaoh's governance and utility token. PHAR is the base token that can be converted into xPHAR.

Pool

A smart contract created by Pharaoh's V3 factory that enables trading between two ERC-20 tokens. Each token pair can have multiple pools with different fee tiers, which adjust dynamically based on market volatility. Learn more here.

Position

A liquidity allocation in a V3 pool defined by a specific price range and amount. Each position is represented as an NFT and can be managed independently. Learn more here.

Price Impact

The effect a trade has on an asset's price due to the size of the order relative to pool liquidity. Larger trades typically result in higher price impact.

Rebase

An anti-dilution mechanism where voting power or token supply adjusts to prevent existing holders from being diluted by emissions.

Range

An interval between two ticks of any distance.

Range Order

Limit order approximation using single-asset liquidity provision. Learn more here.

Slippage

Price change between trade submission and execution.

Spot Price

The current exchange rate between two assets in a pool, calculated from the pool's reserves before any trade occurs.

Swap Curve (Uni V2 or Correlated)

The AMM formula that determines trade prices in pairs. Pharaoh uses two curves: volatile (x*y=k) for standard token pairs, and stable (x³y*y³x≥k) for correlated assets. Learn more here.

Swap Fees

Trading fees paid to xPHAR stakers. Fees vary algorithmically.

Tick

Discrete boundaries in price space.

TWAP Buyback Period

The 24-hour period after each epoch flip during which rewards are being sold and compounded. New p33 cannot be minted from xPHAR during this period, though withdrawals are allowed.

Vote Incentive

Rewards offered to xPHAR holders to incentivize voting on gauges. These incentives help direct emissions to desired liquidity pools.

xPHAR

A non-transferable voting and reward token created when PHAR is converted into the xPHAR system. xPHAR holders earn protocol fees and vote to direct emissions to liquidity gauges.