This is a glossary of terms commonly seen within DAMM mechanics.
The curve invariant, currently for constant product k = base_asset_reserve * quote_asset_reserve
Base Asset Reserve
The virtual base reserves for a market (SOL reserves)
Quote Asset Reserve
The virtual quote reserves for a market (e.g. USDC reserves in a SOL/USDC virtual pool).
The magnitude of the quote asset reserve. For instance, one virtual quote asset reserve is a peg multiplier amount of the quote asset. A peg multiplier ensures that the base asset reserve and the quote asset reserve are balanced at the initialisation of the curve while ensuring that the starting price of the pool is equivalent to the oracle price of the base asset at initialisation.
Mark price is defined as the last market price. In the DAMM, this is defined as (quote_asset_reserve * peg_multiplier) / base_asset_reserve.
The latest composite price from oracles. Oracle price is interchangeable with index price.
Modifying the peg multiplier means re-pegging the curve such that the mark price is closer to the oracle price.
Modifying the curve's invariant k by scaling the base/quote asset reserves. For instance, this modifies the default slippage of a swap.
Terminal price is the mark price if all user's closed their positions (equal to peg multiplier if all k adjustments were done during balanced market).
base asset amount
The amount of base currency (e.g. SOL-PERP) held by a single user
net user position
Current longs - shorts in a given market