Slippage: why your swap output can change
A swap quote is an estimate, not a promise of the final amount received. The execution can differ because prices change while a transaction is pending or because the trade itself moves the pool price.
**Price impact** is the effect your trade has on the price, especially when the trade is large relative to available liquidity. **Slippage** describes the difference between the expected execution and the actual execution.
A slippage-tolerance setting defines how far execution may deviate before the transaction is rejected. A high tolerance may help a transaction complete in changing conditions, but can allow a worse result. A low tolerance may cause more failed transactions.
Before confirming, inspect quoted output, minimum received, pool depth, token contract, and the slippage setting. A successful transaction only means it met its execution conditions not that the price was favorable.
@justinsuntron #TRONEcoStar #DeFi
A swap quote is an estimate, not a promise of the final amount received. The execution can differ because prices change while a transaction is pending or because the trade itself moves the pool price.
**Price impact** is the effect your trade has on the price, especially when the trade is large relative to available liquidity. **Slippage** describes the difference between the expected execution and the actual execution.
A slippage-tolerance setting defines how far execution may deviate before the transaction is rejected. A high tolerance may help a transaction complete in changing conditions, but can allow a worse result. A low tolerance may cause more failed transactions.
Before confirming, inspect quoted output, minimum received, pool depth, token contract, and the slippage setting. A successful transaction only means it met its execution conditions not that the price was favorable.
@justinsuntron #TRONEcoStar #DeFi