AMM
Slippage
Definition
Slippage refers to the difference between the expected price of a trade and the actual executed price. It occurs when there's insufficient liquidity or high volatility, causing the price to move unfavorably during trade execution.
Example
Example
You try to buy $10,000 worth of a token at $100, but due to slippage, you end up paying an average of $102 per token.
Risks to Consider
Risks
- Higher costs than expected
- Front-running
- Sandwich attacks
Common Questions
How can I minimize slippage?
Trade smaller amounts, use liquid pairs, set appropriate slippage tolerance, or **use aggregators** that find the best routes.
