DeFi
Slippage
The difference between the expected price and the actual executed price when trading, especially on AMMs.
Last Updated
2026-03-29
What is Slippage?
Slippage is the difference between the price you expect when initiating a trade and the price you actually receive at execution. It occurs because blockchain transactions take time to confirm, during which prices can move.
How does Slippage work?
- Block time creates a gap Ethereum takes roughly 12 seconds per block, during which pool ratios can change.
- Other trades executing before yours shift the price along the AMM curve.
- Larger trades cause more price impact, amplifying slippage.
- DEXs let users set a maximum slippage tolerance if exceeded, the transaction reverts.
Why does Slippage matter?
High slippage makes small trades uneconomical and erodes profitability on large ones. Setting tolerance too high exposes users to sandwich attacks; too low causes frequent failed transactions.
Key features of Slippage
- Distinct from price impact slippage is time-based, price impact is size-based
- User-configurable tolerance (typically 0.1% to 1%)
- Lower on stable pairs like Curve pools
- Higher on volatile, low-liquidity pairs
Examples of Slippage
Swapping 1 ETH for USDC might have under 0.01 percent slippage on Uniswap's main pool. The same trade on a thin meme coin pool could result in 5 to 10 percent slippage.