For the same token, why does the average execution price get higher the more you buy?
Uniswap V2 uses the constant product formula: ignoring fees, the product of the quantities of the two tokens in the pool remains unchanged before and after a trade.
When swapping on a DEX, set your slippage tolerance carefully. If it’s too high, you may lose more to sandwich attacks.
$UNI is the governance token of Uniswap, which popularized AMMs.
Did you know this already?
Uniswap V2 uses the constant product formula: ignoring fees, the product of the quantities of the two tokens in the pool remains unchanged before and after a trade.
When swapping on a DEX, set your slippage tolerance carefully. If it’s too high, you may lose more to sandwich attacks.
$UNI is the governance token of Uniswap, which popularized AMMs.
Did you know this already?