DefineDeFiWeb3 Glossary

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.

Related Terms

Advanced Concepts

βš™οΈHow It Works

  1. 1

    You Submit Trade

    You click swap at the quoted price

  2. 2

    Transaction Pending

    Your trade waits in the mempool

  3. 3

    Market Moves

    Other trades execute, changing the price

  4. 4

    Your Trade Executes

    You get a different price than expected

πŸ“ŠKey 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

πŸ”Common Misconceptions

βœ—Low slippage is always better
βœ“Too low slippage causes failed transactions, wasting gas. Match slippage to market conditions.
βœ—Slippage only affects small traders
βœ“Large trades are MORE affected because they move the market more (price impact).
βœ—DEX aggregators eliminate slippage
βœ“Aggregators reduce slippage by splitting trades across pools, but can't eliminate it entirely.

πŸš€Getting 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
Browse All Terms