How Do Exchanges Attempt to Mitigate Slippage for Large Market Orders?

Exchanges use several methods to mitigate slippage. They encourage market makers through incentives to maintain deep order books, which absorbs large orders more effectively.

They also implement smart order routing systems that seek the best prices across multiple liquidity pools. Some exchanges may offer 'guaranteed execution' for small orders, but for large orders, the primary mitigation is ensuring deep liquidity.