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Automated market maker#

An automated market maker is a smart contract on Ethereum that holds on-chain liquidity reserves. Users can trade against these reserves at prices set by an automated market making formula.

Constant product formula#

The automated market making algorithm used by Pulsar. See x*y=k.


ERC20 tokens are fungibile tokens on Ethereum. Pulsar supports all standard ERC20 implementations.


A smart contract that deploys a unique smart contract for any ERC20/ERC20 trading pair.


A smart contract deployed from the Pulsar Factory that enables trading between two ERC20 tokens.


Liquidity within a pair is pooled across all liquidity providers.

Liquidity provider / LP#

A liquidity provider is someone who deposits an equivalent value of two ERC20 tokens into the liquidity pool within a pair. Liquidity providers take on price risk and are compensated with fees.

Mid price#

The price between what users can buy and sell tokens at a given moment. In Pulsar this is the ratio of the two embedded amm reserves.

Price impact#

The difference between the mid-price and the execution price of a trade.


The amount the price moves in a trading pair between when a transaction is submitted and when it is executed.

x * y = k#

The constant product formula.


The "k" value in the constant product formula