Despite the massive upsides of decentralization, DEX trading has shortcomings that haven't been ironed out yet.
30 Jul 2022, 13:48
Despite the massive upsides of decentralization, DEX trading has shortcomings that haven't been ironed out yet. Price slippage is one of them.
#DeFiBreakdown 4 will walk you through some basic knowledge to know about price slippage.
1/ First, high trading volume & market volatility can create a disconnect between the market price & the transaction price, leading to large swings in the market.
2/ Second, low liquidity makes the spread between lowest ask and highest bit wide, causing dramatic price changes (2/3)
Slippage doesn't always end up with asset losses but it is one of the key factors leading to annoying #DeFi trading experience.
There are some approaches to mitigate negative slippage in #DeFi. Checks them out and choose the most convenient option for yourself!
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