Slippage settings
Last updated
Last updated
Slippage is the price change caused by external market movements and not related to the user's operation within the pool. Slippage strongly depends on the liquidity volume inside the pool. If a token pool has low liquidity, significant changes in the exchange rate within the pool require less market movement.
Eywa DEX users can configure the maximum allowable slippage when performing a cross-chain operation:
The field specifies the slippage for one AMM operation (operations of addition, withdrawal and exchange in liquidity pools). A cross-chain transaction may include several AMM operations. In this regard, the slippage will be summed up.
If, during the execution of an operation, it is found that the slippage in one of the pools exceeds the user-defined limits, the operation will be interrupted. Intermediate assets will be credited to the user's address. Although gas cannot be returned for an interrupted transaction, interrupting the transaction due to Slippage can prevent much more significant loss of funds during a swap within the pool.
By default, the Slippage value is set at 0.5%. You can manually set the Slippage value. In doing so, we recommend considering the following recommendations:
Setting a too low acceptable Slippage can result in transaction interruption even with low volatility within the pool, leading to gas waste when attempting the operation.
Setting a high Slippage opens opportunities for frontrun attacks and increases the risk of loss during high asset volatility in the market.
Change slippage parameter only if you clearly understand why you are doing it.