What Is “Slippage” in the Context of Low-Liquidity DEXs?

Slippage is the difference between the expected price of a trade and the price at which the trade is actually executed. In low-liquidity DEXs, a large trade can significantly move the price, causing high slippage.

This means the trader receives less of the desired asset than anticipated. Attackers leverage this high slippage to their advantage; their large trade causes the price to spike, which is the manipulated price the oracle then reports.