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Ayomarv 🥚

@ayomarv

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There are definitely similarities between slippage and price impact, and they are closely related concepts in decentralized finance (DeFi) trading: Both reflect a difference between the expected and actual execution price of a trade. When you initiate a swap, you see an estimated output. Slippage and price impact both describe why the final amount you receive might be different from that initial estimate. Both are influenced by the size of your trade relative to the liquidity available in the trading pool. A larger trade compared to the pool's liquidity will generally result in higher slippage and a greater price impact. Both can lead to receiving less of the desired asset. This is the practical consequence that traders need to be aware of and manage. Both are important considerations for successful trading. Understanding these concepts helps traders set appropriate tolerances and avoid unexpected or unfavorable outcomes.
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