What Is “Slippage” in a DEX Trade and How Can It Be Exploited in a Scam?

Slippage is the difference between the expected price of a trade and the executed price, common in low-liquidity pools. In a scam, developers can manipulate the token's smart contract to allow for extreme slippage, effectively making it impossible for investors to sell their tokens at a reasonable price.

When an investor tries to sell, the transaction fails or executes at a near-zero price, trapping their funds. This is often called a "honeypot" scam.