🍌Price Impact & Slippage

Price Impact vs Slippage

These two are not to be mixed up:

• Slippage occurs because of changing market conditions between the moment the transaction is submitted and its verification.

• Price impact comes from the limited liquidity available to settle the transaction.

The price impact is the difference observed between the total value of the entry tokens swapped and the destination tokens obtained (in USD).

The bigger the trade is, the bigger the price impact can be.

On the other hand, slippage refers to the difference between the expected amount and the received amount - it's due to competing transactions that pushed the price lower after the first transaction was submitted.