Glossary

A list of key terms to help you understand how SeaSwap and DeFi aggregators work.

Key Aggregator Terms

DEX Aggregator A tool that connects to multiple decentralized exchanges (DEXs) and finds the best price for your swap. 🟢 Example: Instead of swapping KAS for a meme token on one DEX, SeaSwap may route it through two DEXs to get you a better rate.

Routing Engine The system that chooses the most efficient trade path based on price, liquidity, and slippage. 🟢 Example: SeaSwap may split your trade — 70% via DEX A and 30% via DEX B — if that gives you the best outcome.

Positive Slippage When your trade ends up executing at a better price than expected. 🟢 Example: You expected 1,000 tokens but received 1,015.

AMM (Automated Market Maker) A smart contract-based system used by DEXs to price and trade tokens using liquidity pools instead of traditional order books. 🟢 Example: When you trade on a DEX like Uniswap, you're swapping tokens directly with a pool of funds, not with another person. The AMM automatically adjusts the price based on how much of each token is in the pool.

Token Swapping Terms

Token Approval Before you can swap a token for the first time, you must approve SeaSwap to use it via your wallet. 🟢 Example: Approving USDT before you can swap it to another token.

Estimated Output The number of tokens you’re expected to receive, based on current prices and liquidity. 🟢 Example: You’re shown an estimate of 2,340 tokens before the swap. This might change slightly due to slippage.

Slippage Tolerance The maximum % difference you’re willing to accept between the expected price and final price. 🟢 Example: If slippage tolerance is set to 0.5%, and price moves more than that during the trade, it will fail.

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Kaspa Layer 2 Context

Kaspa Layer 2 An advanced environment built on top of the Kaspa blockchain, enabling fast and low-cost smart contract interactions.

Finality The moment a transaction is considered irreversible. 🟢 Example: On Kaspa Layer 2, your swap is confirmed and final in seconds.

EVM-Compatible Means SeaSwap uses Ethereum-like smart contracts. If you’ve used MetaMask or other EVM tools before, it will feel familiar.

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UX & Wallet Interaction

Connect Wallet Link your crypto wallet to SeaSwap to begin trading. 🟢 Example: Using MetaMask or Kastle Wallet to view your balance and sign transactions.

Transaction Confirmation After reviewing the route and output, you’ll confirm the trade by signing in your wallet.