Slippage
Definition
Slippage is the difference between the expected price of a trade and the actual executed price, typically caused by low liquidity or fast-moving markets. On AMMs, large trades against shallow liquidity pools incur significant slippage — sometimes 5%+ on illiquid tokens. Most DEX interfaces let users set a 'max slippage' limit to protect against unexpectedly bad executions or sandwich attacks.
Why Does This Matter?
Understanding Slippage is essential for anyone investing in cryptocurrencies or working with blockchain technology. This concept directly influences how projects are valued, how markets behave, and what risks and opportunities exist for investors.
How Does CryptoValue Use This?
At CryptoValue, fundamental concepts like Slippage feed into our proprietary Value Score — a rating from 0 to 100 based on 10 on-chain and market metrics. Our goal is to help you identify undervalued and overvalued coins, rather than just looking at price.