Terminology

Commonly used technical words

Virtual Adoption:

Petlovers that are not in the same locality or country as the pet to be adopted. Local Adoption: Petlovers resident in the same location as the pet to be adopted.

Collaboration campaigns:

Donations locally or internationally promoted by Firulaix to raise funds for a shelter or any animal protection event through the FIRU Token.

FIRU Token:

Payment method for the FIRUTOPÍA miniverse.

Automated Market Maker (AMM)

An Automated Market Maker (AMM) is a fully automated decentralized exchange in which transactions are made against a group of tokens called a liquidity pool. An algorithm regulates the values ​​and prices of the tokens in the liquidity pool. Since MMAs do not depend on an active market of buyers and sellers, transactions can occur at any time.

Decentralized Exchange (DEX)

A decentralized exchange (DEX) is a financial services platform for buying, trading, and selling digital assets. In a DEX, users transact directly and peer-to-peer on the blockchain without a centralized middleman. DEXs do not serve as custodians of user funds and are often democratically managed with a decentralized governance organization. Without a central authority charging fees for services, DEXs tend to be cheaper than their centralized counterparts.

Impermanent Loss (IL)

Impermanent loss occurs when the value of tokens held in an algorithmically balanced pool of liquidity loses value relative to assets on the open market due to price volatility. The loss is "impermanent" because the original value of the tokens can be restored if the liquidity pool restores balance.

Liquidity

With respect to an asset, liquidity refers to the ability to exchange an asset without substantially changing its price in the process, and the ease with which an asset can be converted to cash. The easier it is to convert the asset to cash, the more liquid the asset will be. With respect to markets, liquidity refers to the amount of business activity in a market. The higher the trading volume on the market, the more liquid the market will be. Liquid markets tend to increase the liquidity of assets.

Liquidity Providers (LP)

A liquidity provider is a user who deposits tokens in a liquidity pool. In exchange for supplying liquidity, users often receive liquidity provider (LP) tokens that represent the portion of the liquidity pool that the user owns.