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

# Definitions

**PulseX:**  [PulseX](https://pulsex.com/) is a decentralized exchange (DEX) native to PulseChain that incentivizes liquidity providers. PulseX will house the largest amount of liquidity at PulseChain mainnet launch.

**Liquidity:**  A liquid asset can be sold rapidly, with minimal loss of value, anytime. An illiquid asset can not be sold without a drastic price reduction. Speculators and market makers are key contributors to the liquidity of a market or asset. Automated market makers, such as PulseX, require tokens to be paired into a liquidity pool in order to trade between them.  These pools enable trading to occur at anytime, without having to wait for another user to trade with.

**Liquidity Pool:**  A pairing of two tokens used by an automated market maker to facilitate trading.  This pool allows tokens to be swapped at any time without having to wait for another user to trade with.  Any user can add tokens to a liquidity pool on PulseX to support token trading, earn trading fees and sometimes liquidity provider incentives.

**Staking:**  Locking up tokens into a smart contract to earn rewards provided by that contract.  Staking is used in many ways throughout DeFi, many times as a way to distribute incentives and rewards in exchange for locking up tokens.

**NFT:** Non-Fungible Tokens are each one-of-a-kind, unique and separate from every other NFT.  Unlike a simple $USD bill which is the same as every other bill like it, each NFT is unique and cannot just be replaced with another NFT.  A non-fungible token is a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify ownership and authenticity.

**Bonding Curve:** a mathematical formula defining the pricing relationship between two tokens.  


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