What is slippage?
- When user place orders, they do not always execute at the exact price one desire. At times, the trade executes at a lower price (good) or sometimes at a higher price (bad). This “wiggle room” is called price slippage
- The two major causes of price slippage are price volatility and low liquidity
- Slippage can just be adjusted on HeliSwap DEX
When one trades crypto assets on decentralized exchanges, one must have definitely encountered the term slippage. In other words, sometimes when people place orders, they do not always execute at the exact price one desires. At times, the trade executes at a lower price (good) or sometimes at a higher price (bad). This “wiggle room” is called price slippage.
What causes slippage?
The two major causes of price slippage are price volatility and low liquidity.
Slippage due to price volatility occurs when there is a price shift between the time an individual places the order and the time when it is executed. As aforementioned it can be positive or negative based on what direction the price changes tends to go in.
If a token has low liquidity, and one places an order (especially if it is a bigger order) there are chances that the price changes as the system fulfills the order. That in turn means that it is pushing the price from your execution. The more liquid a pool is, the lower the chances of large price slippage.
Can I adjust / influence slippage?
On HeliSwap you can, and this is how:
First go to app.heliswap.io. This should redirect you directly to the swapping feating of HeliSwap.
You should be able to see the widget from the pic below where you can select the tokens and token amounts you want to swap.
Next, go ahead and click the settings button above the swapping feature.
A window should pop up that gives you the option to determine the transaction settings. It should look like the picture below. On this widget you will be able to set the slippage in % and also the translation deadline!
If needed, best hover over the question marks next to each word, that will give you another explanation.
The slippage question mark is going to explain that if prices of your specified tokens change adversely, your transaction will revert, and that slippage allows you to specify the price change in tokens that you are willing to accept.
The transaction deadline question mark is going to explain that your transaction will be reverted automatically if it takes longer than your specified deadline time.
And if you want to reset everything back to the “factory settings”, the auto button will reset the slippage automatically back to 0.1% and the transaction deadline to 60 minutes.