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How Do Smart Contracts Manage Slippage on a Decentralized Exchange?

Slippage is the difference between the expected trade price and the price at which the trade is executed, often occurring in large AMM trades. Smart contracts manage this by allowing the user to set a maximum acceptable slippage tolerance.

If the price moves beyond this tolerance during the transaction, the contract automatically reverts the trade, protecting the user from unfavorable execution.

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