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What Is “Slippage” in Decentralized Finance (DeFi) Trading?

Expected Price $neq$ Execution Price. Volatility $uparrow$ Slippage. Low Liquidity Risk 777.
Greeks.Live18.11.25

What Is “Slippage” in Decentralized Finance (DeFi) Trading?

Slippage is the difference between the expected price of a trade and the price at which the trade is actually executed. It commonly occurs in volatile markets or when trading assets with low liquidity, especially on decentralized exchanges (DEXs) using Automated Market Makers (AMMs).

Large trades relative to the liquidity pool size often experience greater slippage.

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