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Slippage is when you see one price while placing an order, but get a worse price when it actually executes. The difference is the extra money you pay.
Why does it happen? On-chain swaps use liquidity pools. The shallower the pool and the larger the trade, the farther the price gets pushed. Worse, while your order is sitting in the public queue waiting to be filled, everyone can see it—and sandwich bots are watching.
How do they sandwich you? Three steps: they buy ahead of you to push the price up; your order executes at the higher price; then they sell to pocket the difference. You’re the filling in the sandwich, and what you lose is their profit.
A real example: in 2023, the best-known sandwich bot sandwiched users’ trades around 100,000 times over a few months, making about $40.6 million. Each hit may look like just a few bucks, but it adds up at scale.
How to avoid getting sandwiched: ① Don’t set slippage too high—that’s authorization you’re handing over yourself; ② Split up large orders; ③ Use limit orders instead of rushing in with market orders when possible; ④ Take it slow in shallow pools, or use a route with MEV protection.
Have you ever been sandwiched? What’s the most you’ve lost in one go? Tell us in the comments $BTC $ETH $BNB