ARCIPEDIA · TRADING

Plain English

Slippage is the difference between the price you expected on a trade and the price you actually received. On a DEX, slippage happens because your trade itself moves the price of the pool you are trading against.

How it actually works

If a pool has $1M of ETH and $3B of USDC, a $100 swap barely moves the price. A $10M swap moves it significantly. The AMM curve is the math: as you remove ETH from the pool, the price of remaining ETH rises. Slippage tolerance settings let you cap how much price impact you will accept; if the price moves more than your tolerance, the trade reverts.

What it means for you

For members trading meaningful size, slippage is a real cost. Splitting a large trade across multiple smaller swaps, choosing deeper pools, or using aggregators that route across many pools all reduce realized slippage.

How ARCrypto teaches this

We teach trade-execution discipline: how to size relative to pool depth, when to use aggregators (1inch, CowSwap), and the structural difference between slippage and front-running.

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Educational content only. Not investment, tax, or legal advice.