> For the complete documentation index, see [llms.txt](https://docs.canopyhub.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.canopyhub.xyz/glossary.md).

# Glossary

Understand the key concepts that drive Canopy.

#### **AEGIS Contract**[​](https://labs-solo.github.io/canopy-docs/introduction/glossary-of-terms#aegis-contract) <a href="#aegis-contract" id="aegis-contract"></a>

An autonomous smart contract responsible for managing liquidity and token interactions within Canopy, ensuring seamless and secure operations.

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#### **Directional Liquidity**[​](https://labs-solo.github.io/canopy-docs/introduction/glossary-of-terms#directional-liquidity) <a href="#directional-liquidity" id="directional-liquidity"></a>

Liquidity provision that allows for single-token liquidity provision, minimizing the risk of over-selling assets and reducing exposure to impermanent loss.

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#### **$LEAF Token**[​](https://labs-solo.github.io/canopy-docs/introduction/glossary-of-terms#leaf-token) <a href="#leaf-token" id="leaf-token"></a>

The primary liquidity token used for trading, liquidity provision, and governance within the Canopy ecosystem.

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#### **$OAK Token**[​](https://labs-solo.github.io/canopy-docs/introduction/glossary-of-terms#oak-token) <a href="#oak-token" id="oak-token"></a>

A token representing long-term value accrual, redeemable for an increasing amount of $LEAF tokens over time, incentivizing sustained participation.

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#### **Impermanent Loss**[​](https://labs-solo.github.io/canopy-docs/introduction/glossary-of-terms#impermanent-loss) <a href="#impermanent-loss" id="impermanent-loss"></a>

The temporary loss of funds experienced by liquidity providers due to volatility in a trading pair, which Canopy mitigates through D-AMM technology.

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#### **Liquidity Provider (LP)**[​](https://labs-solo.github.io/canopy-docs/introduction/glossary-of-terms#liquidity-provider-lp) <a href="#liquidity-provider-lp" id="liquidity-provider-lp"></a>

An individual or entity that supplies tokens to liquidity pools in exchange for potential rewards, contributing to the ecosystem's liquidity and stability.

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#### **Single-Token Liquidity** <a href="#single-token-liquidity-pods" id="single-token-liquidity-pods"></a>

Specialized pools within the D-AMM where asset owners can deposit a single type of token for liquidity provision without needing to pair assets.

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#### **Directional Liquidity**[​](https://labs-solo.github.io/canopy-docs/introduction/glossary-of-terms#directional-liquidity-1) <a href="#directional-liquidity-1" id="directional-liquidity-1"></a>

A type of AMM that allows for single-token liquidity provision, reducing the risk of impermanent loss.

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#### **Protocol-Owned Liquidity**[​](https://labs-solo.github.io/canopy-docs/introduction/glossary-of-terms#system-owned-liquidity) <a href="#system-owned-liquidity" id="system-owned-liquidity"></a>

Liquidity that is owned and managed by the Canopy platform itself, reinvesting fees back into the ecosystem for sustainable growth.

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