🚨THE REASON WHY SWAPPED TOKENS OFTEN RETURNS LESS THAN THE SWAPPED PRICE •••••••••••••••• Have you ever tried to swap any token on a dex or a centralized exchange, and then noticed that the quantity you always tend to recieve are often less than what you originally or initially swapped🤔 The truth of the matter is that the DEX didn't take a hidden cut. The price you were looking at was never a fixed price. It was a reference point, and the actual execution price was decided by something else entirely. LET ME EXPLAIN👇 The price you see on a tracker, an aggregator, or a chart reflects where the last trades happened, meaning that It's historical. It tells you where the market has been interms of the highest or lowest points, not what you'll personally receive after placing a trade or a swap. What you'll actually get depends on three (3) things: - The specific pool your swap is being routed through - The depth of the pool - And lastly, how large your trade is relative to that specific pool None of those three shows up in a ticker price, which is exactly why the number in your head and the number in your wallet are different. LETS GET TO UNDERSTAND WHAT DETERMINES YOUR SWAP/TRADE EXECUTION PRICE Most DEXs, including STONfi, run on an automated market maker model. Instead of matching buyers with sellers through an order book, you're trading against a shared pool holding two tokens. The ratio between those two token balances is what determines the price. For example, lets say a pool holds 100,000 USDT and 50,000 TON. The ratio between those two numbers is what determines the price. When you swap USDT for TON, you're adding USDT to the pool and removing TON. Add 5,000 USDT and the pool increases to 105,000 USDT against a reducing TON balance. That shift in ratio is what moves the price against your swaps while your own trade is still executing how much you added and removed in the pool. That is called Price Impact, and it has nothing to do with market volatility.