A simple example
You are quoted an amount of ETH for your BTC. By the time the swap executes, the market has moved, or your trade is large compared with the available liquidity. You receive slightly less than the first number you saw. That gap is slippage.
It can also go the other way, but you should plan around the downside.
What causes it
- Price movement between the quote and execution.
- Thin liquidity, where a larger trade moves the price against you.
- Slow confirmations on the sending chain, which leave more time for prices to change.
Quoted amount versus minimum amount
A quote often has two numbers: the expected amount, and a minimum you are guaranteed to receive if the swap completes. The minimum is the one to read. If the market moves further than the allowed tolerance, a provider may refund the swap instead of completing it at a worse price.
How to keep slippage low
- Compare quotes. Providers with deeper liquidity usually give a tighter result.
- Split a large swap into smaller ones if the quote worsens as the size grows.
- Send promptly once you have a quote, and pay a network fee high enough to confirm quickly.
- Check the minimum received, not just the headline amount.
How Sense Swap fits
Sense Swap shows the rate, fees and the minimum you will receive for each provider before you send, so you can compare the number that actually matters.
Questions
- What is slippage in crypto?
- The difference between the expected amount and the amount actually received, caused by price movement or limited liquidity between the quote and execution.
- Is slippage the same as a fee?
- No. A fee is a stated charge. Slippage is a change in the result caused by market conditions. Both reduce what you receive.
- Can I avoid slippage completely?
- Not entirely. You can reduce it by comparing quotes, avoiding very large single swaps, and sending promptly.