Glossary
| Term | Definition |
|---|---|
| propAMM | An onchain market maker that prices trades from its own logic and inventory and updates its quotes continuously. |
| Active liquidity | Liquidity whose price is refreshed continuously by an operator, independent of trade activity. |
| Passive liquidity | Liquidity that prices from a fixed formula and only moves as the pool is traded against, such as a constant-product DEX. |
| Liquidity source | Any venue Rialto can quote and settle against, including propAMMs and conventional DEX pools. |
| Quote | A live price for a specific order size, returned at request time and valid for a brief window. |
| Route | The source or set of sources selected to fill an order. |
| Leg | A single source’s portion of a route when an order is split across more than one source. |
| Best execution | Selecting the route that returns the most output net of network costs. |
| Slippage | The difference between the quoted output and the minimum output an order will accept before it reverts. |
| Reference price | The external price a propAMM anchors its quotes to. |
| Inventory | The reserves a propAMM holds and fills trades from. |
| Settlement | The onchain execution of a selected route in a single atomic transaction. |
| Taker | The party submitting an order to be filled. |
| Gasless execution | An execution option where the user signs the order and a relayer broadcasts the transaction and pays the network fee. |
| Integrator | A wallet, frontend, or other application that routes orders through Rialto. |