PRICE IMPACT, WHY A BIGGER SWAP CAN GIVE YOU A WORSE RATE
A 1 TON swap and a 100 TON swap are not necessarily executed at the same effective rate. On a decentralized exchange, the size of your trade can directly affect the price you receive.
So why does this happen?
STON.fi uses liquidity pools to execute swaps. When you make a trade, you change the balance of the assets available in the pool. A small transaction may barely affect that balance. A much larger transaction can move it significantly.
This is called price impact.
For example, imagine a pool has 100 TON available on one side. Buying 1 TON changes the pool slightly. Buying 50 TON changes it much more. The larger trade puts more pressure on the available liquidity, so the effective price can become worse.
This is why the amount you are swapping matters.
Liquidity depth also matters. A large pool can absorb a larger transaction with less price impact, while a smaller pool can experience noticeable movement from a comparatively modest trade.
There is another important distinction: price impact comes from your own trade. Slippage is the difference between the expected result and the final result caused by price movement or execution conditions.
Before confirming a large swap, check the quoted output and the displayed price impact. If the impact is unusually high, consider whether the trade size or route should be changed.
Make your next swap with the numbers visible before you confirm.
"Open STON.fi and check your swap quote"
đđđđąđđąđđ„ đđđŹđšđźđ«đđđŹ:
Official Site: https://app.ston.fi
Technical Documentation: https://docs.ston.fi
Community Chat: https://t.me/ston_fi
A 1 TON swap and a 100 TON swap are not necessarily executed at the same effective rate. On a decentralized exchange, the size of your trade can directly affect the price you receive.
So why does this happen?
STON.fi uses liquidity pools to execute swaps. When you make a trade, you change the balance of the assets available in the pool. A small transaction may barely affect that balance. A much larger transaction can move it significantly.
This is called price impact.
For example, imagine a pool has 100 TON available on one side. Buying 1 TON changes the pool slightly. Buying 50 TON changes it much more. The larger trade puts more pressure on the available liquidity, so the effective price can become worse.
This is why the amount you are swapping matters.
Liquidity depth also matters. A large pool can absorb a larger transaction with less price impact, while a smaller pool can experience noticeable movement from a comparatively modest trade.
There is another important distinction: price impact comes from your own trade. Slippage is the difference between the expected result and the final result caused by price movement or execution conditions.
Before confirming a large swap, check the quoted output and the displayed price impact. If the impact is unusually high, consider whether the trade size or route should be changed.
Make your next swap with the numbers visible before you confirm.
"Open STON.fi and check your swap quote"
đđđđąđđąđđ„ đđđŹđšđźđ«đđđŹ:
Official Site: https://app.ston.fi
Technical Documentation: https://docs.ston.fi
Community Chat: https://t.me/ston_fi
