Plain-language definitions of the terms used across these docs, with the 1inch Aqua angle.
What is an AMM?
An automated market maker (AMM) is a smart contract that prices swaps from a formula over on-chain reserves instead of an order book. In 1inch Aqua the AMM logic is a program of SwapVM opcodes, and the reserves are virtual balances backed by tokens that never leave the maker's wallet.
What is a DEX?
A decentralized exchange (DEX) lets users swap tokens peer-to-contract without a custodian. Aqua is not a DEX brand; it is a self-custodial shared liquidity layer that any DEX or maker can build on.
What is a programmable AMM?
A programmable AMM lets builders define custom pricing/behaviour instead of a single fixed curve. SwapVM is Aqua's programmable AMM engine (an alternative to Uniswap v4 hooks and Algebra plugins) — see the comparison.
What is concentrated liquidity?
Concentrated liquidity puts a maker's liquidity into a bounded price range for deeper depth and higher fee capture inside that range. In Aqua it is the XYCConcentrate opcode / the concentrated strategy archetype.
What is shared liquidity?
In Aqua, one wallet balance can back many strategies on a chain at once (the Shared Liquidity Ratio) — availability and efficiency, not leverage; tokens are never borrowed.
Key terms
| Term | Meaning |
|---|---|
| SwapVM | The Aqua swap engine that runs a strategy's opcode program inside AquaSwapVMRouter. |
| Opcode / instruction | A unit of SwapVM logic (pricing, fee, access, control flow). The deployed Aqua set: Controls, XYCSwap, XYCConcentrate, Decay, Fee, PeggedSwap, Extruction. |
| Position | The 1inch dApp's name for a strategy — the liquidity you open in the Aqua app. On-chain and throughout the SDK, the API and these developer docs it is a strategy; the code identifiers keep that name (strategyHash, the /strategies endpoint, the Strategy DTO). |
| Strategy | The on-chain object registered by ship() (identified by strategyHash). Shown as a "position" in the dApp. |
| Maker / taker | Maker = liquidity provider (permissionless). Taker = swapper (gated at launch via the KycNFT). |
| Virtual balance | An internal counter in Aqua.sol; not a deposit. Tokens stay in the wallet. |
| Extruction | The opcode that delegates pricing to an external non-upgradeable contract (Path C). |
| KycNFT (RES) | The taker access credential held by KYB-verified 1inch Resolvers. |