Terminology

• Weight - The proportion of a pool's total value which a token represents.

• Denormalized Weight - The denormalized weight value. Solidity does not have good handling for fixed point numbers, so the contracts uses denormalized values to represent token weights.

• Target Weight - The weight that a pool's controller has determined a token should eventually have, and which swaps will move the token towards. Used interchangeably with "desired weight".

• Initialized - Used to describe whether a pool owns a sufficient amount of a token to cover the minimum weight1.

  • Note: this is distinct from "pool initialization", which acts in the place of a constructor.

• Portfolio - The basket of assets held by a pool.

• Portfolio Composition - The makeup of a portfolio, particularly with regard to the weights of each token.

• Underlying Tokens - The tokens held by a pool.

• Index Tokens - Liquidity provider tokens for a pool. These represent ownership of the underlying assets in a pool.

• Rebalance - The process of changing the composition of an index pool.

• Re-weigh - The process of re-assigning the target weights of the current desired tokens in an index pool.

• Re-index - The process of re-assigning both the desired tokens in an index pool and their target weights.