DeFi glossary
Plain-English definitions of the DeFi terms behind Sally's tools — honeypots, liquidity, swaps and more. Each term links to where you can use it on Base or BNB Smart Chain.
Token safety & scams
Honeypot token
A honeypot token is a malicious crypto token whose contract lets you buy but secretly blocks or taxes you out of selling, trapping your funds. Hidden code restricts transfers to non-whitelisted wallets. Sally's honeypot checker simulates a real sell against the contract to detect the trap before you commit.
Buy/sell tax (fee-on-transfer)
A buy/sell tax, or fee-on-transfer, is a percentage skimmed by a token's own contract each time it is traded, redirecting funds to the team, liquidity, or rewards. High or asymmetric taxes can mimic a honeypot. Sally's scanner reports the exact buy and sell tax before you trade.
Rug pull
A rug pull is a crypto scam where developers attract investment, then drain the liquidity pool or dump their holdings, collapsing the token's price to near zero. Locked liquidity and renounced ownership reduce the risk. Sally surfaces these signals so you can judge a token before buying.
Renounced ownership
Renounced ownership means a token's deployer has permanently surrendered the contract's owner privileges, usually by setting the owner to the zero address, so no one can mint, change taxes, or pause trading. It reduces rug risk but also locks in any existing flaws. Sally reports ownership status during scans.
Proxy contract / upgradeable contract
A proxy contract is a smart contract that forwards calls to a separate logic contract, letting developers upgrade the underlying code while keeping the same address and stored data. It enables fixes and new features but adds trust assumptions, since whoever controls the upgrade can change behavior.
Trading & swaps
DEX aggregator
A DEX aggregator is a tool that scans multiple decentralized exchanges and liquidity sources, then routes your trade for the best overall price with the least slippage. Instead of checking each DEX manually, you get one optimized quote. Sally aggregates across 12+ DEXes on Base and BNB Smart Chain.
Slippage
Slippage is the difference between the price you expect on a swap and the price you actually receive, caused by other trades and price movement between quote and execution. A slippage tolerance sets the worst rate you will accept; if exceeded, the transaction reverts to protect you from bad fills.
Price impact
Price impact is how much your individual trade shifts a liquidity pool’s price, driven by your size relative to the pool’s depth; large trades in thin pools get worse rates. Unlike slippage, it is caused by your own order. Sally shows estimated price impact before you confirm a swap.
AMM (automated market maker)
An automated market maker (AMM) is a smart contract that prices trades algorithmically against a liquidity pool instead of matching buyers and sellers via an order book. Most use a constant-product formula (x·y=k). AMMs power decentralized exchanges like Uniswap, PancakeSwap, and Aerodrome that Sally routes through.
Swap widget / embeddable widget
A swap widget is a self-contained, embeddable trading interface that lets visitors swap tokens directly on your website or dApp without leaving the page. It handles quoting, routing, and execution non-custodially. Sally offers an embeddable swap widget you can drop into any page and earn referral fees on volume.
Referral fee (affiliate fee)
A referral fee, or affiliate fee, is a small on-chain commission paid to whoever sends trading volume to a protocol, typically a fraction of each swap. It is non-custodial and settled by the contract. Sally pays referral fees on swap and liquidity volume routed through your embedded widget or link.
Liquidity & pools
Liquidity pool
A liquidity pool is a smart contract holding a reserve of two tokens that traders swap against, replacing the order book on a decentralized exchange. Liquidity providers deposit both tokens and earn a share of trading fees. Sally lets you add and manage pool positions on Base and BNB Smart Chain.
Liquidity lock
A liquidity lock is a smart contract that holds a project's LP tokens for a fixed period, preventing the team from withdrawing the pool's liquidity, a common rug-pull vector. A verifiable lock signals commitment. Sally provides on-chain locks with transparent, public proof of the locked amount and unlock date.
Concentrated liquidity
Concentrated liquidity lets a liquidity provider allocate capital to a specific price range instead of the full curve, earning far higher fees on the same capital while it stays in range. Introduced by Uniswap V3, it is more efficient but requires active management. Sally supports V3 and V4 concentrated positions.
Impermanent loss
Impermanent loss is the opportunity cost a liquidity provider incurs when the prices of their pooled tokens diverge, leaving the position worth less than simply holding the two assets. It becomes permanent only if you withdraw while prices are skewed; trading fees can offset or outweigh it.
LP token
An LP token is a token a liquidity pool issues to represent your share of its reserves and accrued fees; redeeming it withdraws your underlying assets. In concentrated-liquidity pools the position is instead an NFT. LP tokens are also what gets time-locked to prove liquidity cannot be pulled.
TVL (total value locked)
Total value locked (TVL) is the aggregate US-dollar value of all crypto assets deposited in a protocol, pool, or contract, a common gauge of size, liquidity depth, and trust. Higher TVL generally means deeper liquidity and lower slippage. Sally displays per-lock and per-pool value transparently on-chain.
Chains & protocols
Base (chain)
Base is an Ethereum Layer-2 blockchain incubated by Coinbase and built on the OP Stack, offering low fees and fast transactions while inheriting Ethereum security. It launched to the public in 2023 and hosts a large DeFi ecosystem. Sally operates natively on Base for swaps, pools, and locks.
BNB Smart Chain
BNB Smart Chain (BSC) is a fast, low-cost, EVM-compatible blockchain in the BNB Chain ecosystem, widely used for DeFi and token trading via DEXes like PancakeSwap. Being EVM-compatible, it runs standard Ethereum smart contracts. Sally supports BNB Smart Chain for swaps, liquidity provision, and honeypot scanning.
Uniswap V4
Uniswap V4 is the latest version of the Uniswap protocol, introducing hooks (custom logic at pool lifecycle points), a single-contract singleton architecture, and flash accounting to cut gas and pool-creation costs. It launched in 2025. Sally supports adding and managing Uniswap V4 concentrated-liquidity positions.