Understanding Slippage and Price Impact

Slippage And Price Impact

Pangolin V3 provides info about slippage and price impact before you confirm a swap. Price impact is how much your trade will shift the pool’s price – smaller in large/liquid pools, larger in small pools or for big trades. Slippage is related, showing the difference between expected output and minimum received based on your tolerance. If a swap has a very high price impact or requires too high slippage tolerance, consider splitting it into smaller trades or waiting for more liquidity. Pangolin’s dynamic fees also mean that during times of extreme volatility, the fee might be higher, which could slightly reduce the amount you receive – this is indicated in the quote and protects LPs.

Overall, swapping on Pangolin V3 should feel very familiar to any user of DEX platforms. The added benefits (like concentrated liquidity giving you better prices) are available without complicating the basic swap flow. Always review the details before confirming a trade, especially the fee and price impact. Pangolin’s smart router ensures you get the best outcome by possibly combining V3, V2, and other liquidity sources in one transaction. After your swap, you can view the transaction details on Avalanche’s explorer if desired. Happy swapping!