Price Impact and Slippage are often confused, but they describe different parts of a DEX swap.
Price Impact comes from your own trade changing the balance of a liquidity pool.
When the trade is large relative to the available liquidity, the pool price can move more significantly.
Slippage is different.
It refers to the difference between the expected price before confirmation and the actual execution price on chain.
So the simple distinction is:
Price Impact = the effect your trade has on the pool.
Slippage = the difference between expected and actual execution.
Both are important when reviewing a swap.
Do not look only at the token price. Check the execution details before confirming.
#DeFi #DEX #TON #STONfi
Price Impact comes from your own trade changing the balance of a liquidity pool.
When the trade is large relative to the available liquidity, the pool price can move more significantly.
Slippage is different.
It refers to the difference between the expected price before confirmation and the actual execution price on chain.
So the simple distinction is:
Price Impact = the effect your trade has on the pool.
Slippage = the difference between expected and actual execution.
Both are important when reviewing a swap.
Do not look only at the token price. Check the execution details before confirming.
#DeFi #DEX #TON #STONfi
