Glossary

AMM (Automated Market Maker) A type of decentralized exchange mechanism where trades are executed against liquidity pools rather than order books.

Bribe (Voting Incentive) Tokens deposited by a protocol or user into a gauge to encourage veLITH holders to vote for that pool.

Bribe-Match Program A Lithos initiative where incentives deposited by qualified partners are matched by the protocol, effectively doubling their impact.

Epoch A 7-day cycle in Lithos (Thursday to Thursday, reset at 00:00 UTC) during which votes, emissions, and incentives are set. Rewards are claimable at the end of each Epoch.

Gauge A smart contract that distributes LITH emissions to a liquidity pool. veLITH holders vote to decide which gauges receive emissions each Epoch.

Ignition Program A buyback mechanism that uses protocol revenue to purchase LITH from the open market and redistribute it to veLITH holders.

Liquidity Pool (LP) A pair of tokens locked in a smart contract that facilitates swaps. LPs earn trading fees and can stake LP tokens in gauges to earn emissions.

Liquidity Provider (LP) A user who deposits tokens into a pool to provide liquidity for trading. In return, LPs earn fees and emissions.

LITH The native utility token of Lithos. It is used for liquidity incentives, emissions, and governance when locked as veLITH.

veLITH The vote-escrowed form of LITH, issued as an NFT when LITH is locked for up to 4 years. veLITH gives governance rights and access to protocol rewards.

POL (Protocol-Owned Liquidity) Liquidity seeded and owned by Lithos. POL ensures deep liquidity in core pairs and reduces reliance on mercenary capital.

Rebase (Anti-Dilution Rebase) A weekly mechanism where 30% of emissions are distributed to veLITH holders as locked LITH, preventing dilution of long-term lockers.

Slippage The difference between the expected price of a trade and the price at which it executes, often due to liquidity depth.

Stable Pool A liquidity pool designed for correlated assets (e.g., USDT/USDC) with minimal fees and very low slippage.

Volatile Pool A liquidity pool for uncorrelated assets (e.g., LITH/XPL), optimized for price discovery with standard fee levels.

Vote-Escrow (ve) A model where tokens are locked for a period of time to receive governance power. Longer locks = more voting weight.

Whitelisting The approval process required for new tokens before they can be traded, added to pools, or included in gauges.