Glossary

Layer 2 (L2) — Second-layer network built on top of Ethereum's main blockchain to improve scalability, reduce transaction costs, and speed up transactions

Layer 3 (L3) — Solutions are built on top of Layer 2 networks to provide additional scalability, customization, and functionality. In the context of EVEDEX, L3 refers to a custom network built using Arbitrum Orbit technology to enhance performance and reduce transaction costs.

Optimistic Rollup — L2 solution type used by EVEDEX for high throughput and low fees.

Sequencer — In Layer 2 networks, a node or set of nodes responsible for ordering transactions and producing blocks, ensuring efficient processing and consensus.

Account Abstraction (AA) — The blockchain technology concept that allows for more flexible and programmable account management. AA simplifies user interactions with blockchain by making wallets more user-friendly and secure without needing complex technical steps.

Social Recovery — A security mechanism where trusted contacts or devices can help a user recover access to their account in case of lost private keys, enhancing account security.

Rewards Program — Set of activities for EVEDEX ecosystem users aimed at ecosystem popularization through user engagement in various rewarded activities.

Reward Points — Internal points awarded to users for various community or protocol activities.

Protocol Fees — Charges on each transaction or trade in EVEDEX ecosystem. Collected automatically through smart-contracts and stored in the Treasury.

Perpetual Futures — Derivative contracts without expiration dates allow traders to hold positions indefinitely.

Copy Trading — A feature that allows users to automatically replicate the trades and strategies of otherexperienced traders. This enables less experienced users to benefit from the expertise of seasoned traders.

Slippage — The difference between the expected price of a trade and the price at which the trade is executed.

Gas Fees — Transaction fees paid to network validators for processing transactions on the blockchain.

Arbitrum Orbit — The technology stack used by Arbitrum for their Layer 2 and Layer 3 solutions, which EVEDEX builds upon.

Arbitrum Nova — A Layer 2 scaling solution built on top of Ethereum, designed to increase transaction throughput and reduce fees. It uses the AnyTrust model to achieve scalability while maintaining security.

AnyTrust Model — A security model used in Layer 2 solutions where data availability is ensured as long as at least one member of the Data Availability Committee (DAC) is honest. It optimizes for scalability and low fees.

Data Availability Committee (DAC) — A group of trusted entities responsible for ensuring the availability and integrity of transaction data in Layer 2 networks using the AnyTrust model.

Nitro Stack — The technology stack used by Arbitrum to build scalable Layer 2 solutions, offering enhanced performance and full compatibility with Ethereum's Virtual Machine (EVM).

Matching Engine — The system that matches buy and sell orders on a trading platform, executing trades based on price-time priority to ensure fair and efficient markets.

DXmatch Technology — A high-performance matching engine technology used by EVEDEX to deliver centralized exchange-level performance within a decentralized environment.

Session-Based Trading — A feature allowing users to create temporary sessions with specific permissions, enabling smoother trading experiences without constant re-authentication.

Non-Custodial Storage — A system where users maintain full control over their assets and private keys, with no central authority holding custody, aligning with decentralization principles.

Permissionless Output Proposals (PoPs) — A mechanism allowing any user to initiate fund withdrawals from Layer 2 to Layer 1, enhancing decentralization and security in the event of sequencer failure.

Ethereum Virtual Machine (EVM) — The runtime environment for smart contracts in Ethereum, allowing developers to create decentralized applications (dApps) that run on the Ethereum blockchain.

EVM+ — An enhanced version of the Ethereum Virtual Machine that supports additional programming languages and features, enabling more complex smart contract functionalities beyond standard EVM capabilities.