How Does a Decentralized Exchange (DEX) Manage Slippage during Large Stablecoin Trades?

DEXs, particularly those using Automated Market Makers (AMMs) with concentrated liquidity like Curve, manage slippage by employing specialized bonding curves designed for assets expected to trade near parity. These curves offer deep liquidity around the 1:1 peg, allowing for very large stablecoin swaps with minimal price impact (low slippage).

The slippage increases significantly only as the trade moves far from the peg.