What Is Price Impact?
Your trade can change the price you're trading at.
This is called price impact, and it's one of the most important concepts to understand before swapping on a DEX.
When a liquidity pool has limited liquidity compared with the size of your trade, a larger order can move the pool's price more significantly.
For example:
Small trade + deep liquidity โ usually lower price impact
Large trade + shallow liquidity โ potentially higher price impact
This is why the same token can produce different results depending on:
๐น Your trade size
๐น Pool liquidity
๐น Market conditions
๐น The available trading route
And remember: price impact isn't the same as slippage.
Price impact comes from your trade affecting the pool's pricing, while slippage describes the difference between the expected and actual execution price.
Why should STON.fi users care?
Because checking the amount you receive isn't enough.
Before confirming a swap, understand the price impact, slippage, fees, and final amount.
Better DeFi decisions start with understanding what moves the price not just watching the price move.
#STONfi #TON #CryptoEducation #Web3 #DeFi: @STONfi DEX $TON
Your trade can change the price you're trading at.
This is called price impact, and it's one of the most important concepts to understand before swapping on a DEX.
When a liquidity pool has limited liquidity compared with the size of your trade, a larger order can move the pool's price more significantly.
For example:
Small trade + deep liquidity โ usually lower price impact
Large trade + shallow liquidity โ potentially higher price impact
This is why the same token can produce different results depending on:
๐น Your trade size
๐น Pool liquidity
๐น Market conditions
๐น The available trading route
And remember: price impact isn't the same as slippage.
Price impact comes from your trade affecting the pool's pricing, while slippage describes the difference between the expected and actual execution price.
Why should STON.fi users care?
Because checking the amount you receive isn't enough.
Before confirming a swap, understand the price impact, slippage, fees, and final amount.
Better DeFi decisions start with understanding what moves the price not just watching the price move.
#STONfi #TON #CryptoEducation #Web3 #DeFi: @STONfi DEX $TON