Your Trade Can Change the Price
On an AMM-based DEX, the price you see isn't necessarily independent of your trade.
Your transaction interacts with the liquidity available in the pool.
The larger your trade is relative to that liquidity, the greater the potential price impact.
That's why two users swapping the same token can experience different execution.
A small trade may barely affect the pool.
A large trade can move the pool significantly.
The key question isn't only:
“What's the token price?”
It's also:
“How much liquidity is available for my trade?”
#STONfi #TON
$SOON
On an AMM-based DEX, the price you see isn't necessarily independent of your trade.
Your transaction interacts with the liquidity available in the pool.
The larger your trade is relative to that liquidity, the greater the potential price impact.
That's why two users swapping the same token can experience different execution.
A small trade may barely affect the pool.
A large trade can move the pool significantly.
The key question isn't only:
“What's the token price?”
It's also:
“How much liquidity is available for my trade?”
#STONfi #TON
$SOON