Explain the Concept of ‘Slippage’ in the Context of Large Token Sales

Slippage is the difference between the expected price of a trade and the price at which the trade is actually executed. For a large token sale on a DEX, the initial portion of the order consumes the best prices in the liquidity pool, forcing the rest of the order to execute at progressively worse prices.

This results in a lower overall price for the seller, which is the cost of slippage.