What is Slippage? (Explainer)
Slippage in DeFi occurs when there's a difference between the price you see at the time of confirming a trade and the final price you receive once the transaction is executed. This often happens due to market volatility, low liquidity, or delays in transaction processing on the blockchain. Understanding the causes of slippage is essential for making smarter trading decisions and managing risk more effectively.
Slippage in DeFi happens when the price you confirm isn’t the price you get — and understanding why is key to making smarter trades.
In this video, we explain what slippage is, the main causes behind it (like low liquidity, high volatility, and network congestion), and how it affects your execution. You’ll learn practical ways to manage slippage using tools like tolerance settings, deep liquidity pools, and Layer 2 networks.
By understanding how slippage works, you can reduce risk, improve outcomes, and approach DeFi trading with greater confidence.
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