Have you ever wondered:

▪️ 𝐖𝐡𝐚𝐭'𝐬 𝐭𝐡𝐞 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐬𝐥𝐢𝐩𝐩𝐚𝐠𝐞 𝐚𝐧𝐝 𝐩𝐫𝐢𝐜𝐞 𝐢𝐦𝐩𝐚𝐜𝐭?

Let's find out in the book of truth !👇

When you trade on a classic pool, also known as a fixed weighted pool in our AMM, you expose yourself to :

• 𝐏𝐫𝐢𝐜𝐞 𝐢𝐦𝐩𝐚𝐜𝐭

• 𝐒𝐥𝐢𝐩𝐩𝐚𝐠𝐞

Here's an example of swapping from USDC to ELYS:

• 0.013% Price impact (pretty low, huh? 😎)

• 1% Slippage tolerance (default setting)

But what does this all mean?

Let's begin with 𝐏𝐫𝐢𝐜𝐞 𝐢𝐦𝐩𝐚𝐜𝐭.

Price impact refers to how a single user's trade can influence the market price of a specific asset pair.

This impact is usually more pronounced in illiquid markets or pairs and is closely tied to the liquidity present in the pool.

What about 𝐬𝐥𝐢𝐩𝐩𝐚𝐠𝐞?

Price slippage refers to the change in price caused by external broad market movements, unrelated to your trade.

Similar to price impact, slippage heavily relies on the liquidity in a pool.

If the token pair as a low amount of liquidity, it takes smaller collective market movements to cause significant changes to the pool's rate.

By default, our slippage tolerance is set at 1%.

Our slippage tolerance is set at 1%.

The minimum output you will receive will never be lower than the expected output (6.45 ELYS here)

Slippage tolerance refers to the minimum acceptable output compared to the expected output.

If not, the trade will not proceed.

Alright, I think I've got it, but can you summarize?

• Price impact: Relates to the size of your trade compared to the pool's depth.

• Slippage: Depends on the pool depth and market movements, not on your trade size.

Increasing your slippage can help ensure your transaction goes through despite market movements. While your Price impact will be related to your trade size compared to the pool’s depth