I don't understand much. Can someone explain it in detail?
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Lumen Capital
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BearishA whale wallet that has been inactive for 5 years just exchanged 14.45 million $ADA (~7.08 million USD) for $USDA 9 hours ago.
Due to low liquidity, he only received 847.694 $USDA, incurring a massive loss of 6.2 million USD.
Slippage protects the price from volatility (compared to the initial quote) after placing the order.
What happens here is distortion caused by price impact. He must have received the correct quote and agreed without consideration.
Even setting slippage to 0% doesn't help in this case.
Due to low liquidity, he only received 847.694 $USDA, incurring a massive loss of 6.2 million USD.
Slippage protects the price from volatility (compared to the initial quote) after placing the order.
What happens here is distortion caused by price impact. He must have received the correct quote and agreed without consideration.
Even setting slippage to 0% doesn't help in this case.
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