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Swaps.xyz glossary

Key terms to help you understand swaps, bridges, and cross-chain flows.

Updated over 2 weeks ago

Swap


Exchanging one token for another on the same chain using a decentralized exchange (DEX).

Bridge


Moving value from one blockchain to another (e.g., Ethereum → Base). Some routes mint a temporary representation on the destination chain and may auto-swap back to the canonical token.

Cross-chain call


A bridge or swap plus an automatic contract action on the destination chain (e.g., deposit into a protocol) in one flow.

Layer 1 (L1)


A base blockchain (e.g., Ethereum, Solana, Bitcoin).

Alt L1


An L1 different from the one you’re starting on (often non-EVM).

Layer 2 (L2) / Rollup


A scaling network that processes transactions off-chain and posts proofs or summaries back to an L1, lowering costs and increasing throughput.

Virtual Machine (VM)


The runtime a chain uses to execute smart contracts (e.g., EVM on Ethereum, Sealevel on Solana).

Alt-VM


A Swaps label for non-named VMs (e.g., Bitcoin, XRP). These may use deposit-style flows and extra indexing steps.

Native token vs. wrapped token


The native token is the chain’s gas currency (e.g., ETH on Ethereum). Wrapped tokens represent another asset in a compatible format on a different chain (e.g., WBTC on Ethereum).

Canonical vs. synthetic/“wrapped” asset


The canonical token is the official representation on a chain. Some bridges deliver a wrapped/synthetic version first; routes may auto-swap to canonical when liquidity allows.

Gas


Network fee paid in the source chain’s native token to submit your transaction. Some routes also fund destination execution by netting a small amount from the bridged value.

Token approval (allowance)


Permission for a contract to spend your ERC-20 tokens to execute a swap. Approvals can be revoked later.

Slippage


The allowed difference between your quoted and executed price.

  • Exact-in trades: slippage sets the minimum you’ll receive

  • Exact-out trades: slippage caps the maximum you’ll spend

Price impact


The price change caused by the size of your trade relative to pool liquidity (distinct from slippage due to market movement).

Exact-in vs. exact-out


  • Exact-in: You fix the input and enforce a minimum output

  • Exact-out: You fix the output and allow spending up to a maximum input

Transaction hash / explorer link


A unique ID to track your transaction on a block explorer (e.g., Etherscan, Solscan).

Cross-chain explorers


Explorers that show message/bridge status across chains (e.g., LayerZero Scan, Wormholescan, Axelarscan).

Mint


A mint during a token swap is when new tokens are created on the destination chain to represent the amount you swapped in. This is common in cross-chain routes where a bridge issues tokens on the receiving chain.

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