Glossary
What is Slippage?
Slippage is the difference between the price you expect on a swap and the price you actually get, caused by price movement or low liquidity between quote and execution.
On an AMM, each trade moves the pool's price, so large orders in thin pools fill at progressively worse prices. The gap between quoted and executed price is slippage.
Wallets let you set a slippage tolerance — the maximum you'll accept — and the swap reverts if the price moves past it, protecting you from bad fills and sandwich attacks.
Keep reading
Related terms
- DEXA DEX (decentralized exchange) lets users swap tokens directly from their wallets through smart contracts, with no custodian holding their funds.
- AMMAn automated market maker (AMM) is the algorithm a DEX pool uses to price trades from its token reserves, instead of matching individual buy and sell orders.
- Liquidity poolA liquidity pool is a smart contract holding two tokens that traders swap against; its balances set the price via an automated market maker formula.