Glossary Term
Slippage
Slippage is the difference between the expected price of a trade and the actual executed price, often occurring in volatile or low-liquidity markets. In Solana DeFi, managing slippage is crucial for minimizing trading losses during swaps or large orders on decentralized exchanges (DEXs).
Beginner
Trading
Crypto Terminology
Slippage: what is it?
Examples
- 1
Setting a 1% slippage tolerance on a SOL/USDC swap on Jupiter.
- 2
A large whale order pushes the price up, causing higher slippage and less favorable execution for subsequent trades.
- 3
Failed transaction due to market moving beyond user’s preset slippage limit.
Common Use Cases
Adjusting slippage tolerance before trading small-cap tokens or NFTs.
Protecting against volatility during periods of high trading volume (airdrops, launches).
Calculating swap effects when providing or withdrawing from liquidity pools.
Pro Tips
💡
Review historical slippage on Solana DEXs to understand typical market impact.