Glossary

APR

Annual Percentage Rate. The yearly rate of return on a position, not compounded.

APR is the simple yearly return shown for staking and liquidity positions on SaucerSwap. It does not assume you reinvest rewards. For positions where rewards compound automatically (like xSAUCE), APY is a more accurate measure of realized return.

Related: APY · Yield

Automated Market Maker (AMM)

A type of decentralized exchange that prices trades against a pool of tokens using a formula instead of an order book.

An AMM replaces buyers and sellers matching limit orders with a shared pool of two (or more) tokens. The pool's smart contract uses a pricing formula to quote any trade instantly. SaucerSwap V1 uses the constant-product formula popularized by Uniswap V2; V2 uses concentrated liquidity, where LPs choose the price range their capital is active in.

Related: Liquidity Provider · Concentrated Liquidity · Slippage

Axelar

A cross-chain network used by SaucerSwap to bridge assets and messages between Hedera and other blockchains.

Axelar provides the underlying transport for several of SaucerSwap's bridging flows, including ITS (Interchain Token Service) and routes used by the Squid widget. It lets users move tokens between Hedera and chains like Ethereum, Arbitrum, and Polygon.

Related: Bridge · LayerZero · Cross-chain

Blockchain

A distributed, append-only ledger of transactions maintained by a network of computers without a central operator.

A blockchain stores transactions in cryptographically linked batches (blocks). Many independent nodes keep a copy and agree on the order through a consensus mechanism. The result is a record that no single party can rewrite. Hedera uses a related but different structure called a hashgraph, which still produces a final, ordered ledger.

Related: Consensus Mechanism · Hashgraph · Smart Contract

Bridge

A protocol that moves tokens or messages between separate blockchains.

Because Hedera, Ethereum, Solana, and other chains are independent ledgers, a bridge is needed to represent an asset from one chain on another. SaucerSwap integrates Axelar and LayerZero to bridge supported assets in and out of Hedera. Bridged tokens are usually wrapped representations of the original asset.

Related: Wrapped Token · Axelar · LayerZero

Concentrated Liquidity

A liquidity model where LPs choose a specific price range for their capital, earning fees only while the price trades inside that range.

Used by SaucerSwap V2, concentrated liquidity lets a liquidity provider deposit into a narrow band (for example, 0.99 to 1.01 for a stable pair). Inside that range the LP's capital is dense and fees are high; outside the range the position earns nothing and may sit entirely in one token. It is much more capital-efficient than V1's full-range pools but requires active range management.

Related: Fee Tier · Liquidity Provider · Impermanent Loss

Consensus Mechanism

The set of rules a distributed network uses to agree on the order and validity of transactions.

Proof of Work (Bitcoin) and Proof of Stake (Ethereum) are well-known consensus mechanisms. Hedera uses a different approach called hashgraph, which gossips transactions between nodes and proves their order mathematically rather than competing to produce blocks.

Related: Hashgraph · Blockchain

Cross-chain

Describing an action or asset that involves more than one blockchain.

A cross-chain swap moves value from one chain to another, usually via a bridge. SaucerSwap supports cross-chain entry and exit through Axelar, LayerZero, and the Squid widget so users on other networks can reach Hedera liquidity.

Related: Bridge · Wrapped Token

Custodial

A service where a third party holds your private keys and therefore controls your funds.

Centralized exchanges and many fintech apps are custodial: you log in with a username and password, and the company controls the underlying wallet. The opposite is self-custody, where you hold the keys yourself. SaucerSwap is non-custodial — your wallet signs transactions and we never hold your funds.

Related: Self-Custody · Wallet · Private Key

dApp

Decentralized application. Software whose backend logic runs in smart contracts on a public blockchain.

A dApp typically has a normal web frontend that talks to smart contracts instead of a private server. SaucerSwap is a dApp: anyone can fork the contracts, audit the code, or build their own interface against them.

Related: Smart Contract · Self-Custody

DeFi

Decentralized Finance. Financial services — swapping, lending, staking — built as open protocols on a blockchain rather than by a single institution.

DeFi protocols replace banks, brokerages, and exchanges with smart contracts that anyone can use without permission. There is no signup and no account manager. Users keep custody of their assets and interact through a wallet. SaucerSwap is the DeFi exchange layer on Hedera.

Related: dApp · Smart Contract · AMM

DEX

Decentralized exchange. A protocol that lets users trade tokens directly from their wallets, without an intermediary.

On a DEX, trades execute on-chain against either an order book or a liquidity pool. SaucerSwap is an AMM-style DEX: every swap routes through one or more pools of tokens supplied by liquidity providers.

Related: AMM · Liquidity Provider

ERC-20

A common token standard on EVM chains. On Hedera, ERC-20 tokens can wrap HTS tokens for DeFi composability.

EVM

Ethereum Virtual Machine. Hedera supports EVM smart contracts, which is why MetaMask works with SaucerSwap.

Fee Tier

The swap fee a V2 pool charges. SaucerSwap supports 0.05%, 0.15%, 0.30%, and 1.00% tiers.

Fiat On-Ramp

A service that converts traditional currency (USD, EUR) into crypto, usually via a card or bank transfer.

Front-running

Inserting a transaction ahead of another for profit. Hedera's fair ordering makes this effectively impossible.

Galactic Pioneers

SaucerSwap's community program for active contributors and ambassadors.

Governance Proposal

A formal change proposed to the SaucerSwap DAO and voted on by SAUCE and xSAUCE holders.

Hashgraph

Hedera's consensus algorithm. Gossip-about-gossip plus virtual voting to reach finality in seconds.

HashPack

A popular Hedera wallet with deep SaucerSwap integration.

HBAR

The native cryptocurrency of the Hedera network. Used to pay fees and secure consensus.

Hedera

A public distributed ledger using hashgraph consensus, governed by a council of global organizations.

HTS

Hedera Token Service. Native token issuance on Hedera without writing a smart contract.

Impermanent Loss

The opportunity cost an LP incurs when the price ratio of pooled tokens changes versus simply holding them.

Infinity Pool

SaucerSwap's single-sided SAUCE staking pool. Stake SAUCE, receive xSAUCE.

Kabila

A Hedera wallet alternative to HashPack with web and mobile support.

LARI

Liquidity-Aligned Reward Initiative. SaucerSwap V2's bi-weekly reward distribution that replaces yield farming.

LayerZero

An omnichain messaging protocol used by SaucerSwap to bridge select assets (including USDT).

Liquidity Provider

Anyone who deposits tokens into a pool so that others can trade against them, earning a share of fees.

LP Token

A token representing a share of a V1 liquidity pool. Burnable to withdraw your underlying assets.

Masterchef

SaucerSwap V1's yield-farming contract. Stake LP tokens to earn SAUCE rewards.

MetaMask

An EVM wallet that works with Hedera via the EVM-compatible JSON-RPC relay.

MEV

Maximal Extractable Value. Profit extracted by reordering or sandwiching transactions. Hedera's ordering eliminates common MEV vectors.

Non-custodial

A service that never controls user funds. SaucerSwap is non-custodial.

Price Impact

How much your trade itself moves the pool price. Larger trades have larger impact.

Private Key

The secret string that controls a wallet. Anyone with the key controls the funds.

Proof of Stake

A consensus model where validators are chosen by the amount of token they stake.

Public Key

The shareable identifier derived from a private key. Used to receive funds and verify signatures.

SAUCE

SaucerSwap's governance and utility token.

SaucerSwap Wallet

SaucerSwap's first-party wallet for Hedera, available on iOS and Android.

Seed Phrase

A 12 or 24-word backup that can recreate your wallet's private key. Treat it like a vault combination.

Self-Custody

You hold your own keys. No one else can freeze, seize, or move your funds.

Slippage

The difference between the quoted price and the executed price of a trade, usually due to price impact or movement.

Smart Contract

Code deployed on a blockchain that executes deterministically when called. The backbone of DeFi.

Squid

A cross-chain routing widget integrated into SaucerSwap for bringing assets in from other chains.

Stablecoin

A token designed to track the value of another asset, usually the US dollar (e.g. USDC, USDT).

Token Association

On Hedera, a wallet must explicitly associate with a token before it can hold it. A one-time step per token.

Wallet

Software that stores your keys and lets you sign transactions. Your gateway to any blockchain.

Wrapped Token

A token on chain B that represents an asset originally on chain A, held in reserve by a bridge.

xSAUCE

The liquid staking derivative received when SAUCE is staked in the Infinity Pool. Accrues rewards over time.

Yield

The return earned on a position, expressed as APR or APY.