Slippage
The difference between the price you expect and the price you actually get when trading. Happens because prices change between clicking trade and the trade completing.
Example
Setting 1% slippage means you accept getting up to 1% less than shown. Higher slippage needed for volatile tokens or big trades.
Advanced Concepts
βοΈHow It Works
- 1
You Submit Trade
You click swap at the quoted price
- 2
Transaction Pending
Your trade waits in the mempool
- 3
Market Moves
Other trades execute, changing the price
- 4
Your Trade Executes
You get a different price than expected
πKey Numbers
0.5-1%
Safe Slippage
for major tokens
1-5%
Higher Slippage
for small/volatile tokens
>5%
Danger Zone
invites sandwich attacks
Variable
Auto Setting
let DEX calculate
πCommon Misconceptions
βLow slippage is always better
βToo low slippage causes failed transactions, wasting gas. Match slippage to market conditions.
βSlippage only affects small traders
βLarge trades are MORE affected because they move the market more (price impact).
βDEX aggregators eliminate slippage
βAggregators reduce slippage by splitting trades across pools, but can't eliminate it entirely.
πGetting Started
- 1Start with 0.5-1% slippage for major tokens (ETH, USDC)
- 2Increase to 1-3% for smaller or newer tokens
- 3Use DEX aggregators (1inch, Paraswap) for better rates
- 4Trade during low activity times for less price movement
- 5Never set slippage above 5% unless absolutely necessary