Low Slippage Swapping

• minimise the impact to the price when making a token swap

• minimise slippage or even get positive slippage (swapping more than quoted)

• mainly by matching ask & bid side users to minimise slippage of both side

What is Slippage

• slippage happens in all market - stock, forex, crypto

• slippage is the price difference occurs between the quote price & actual executing price

• slippage tolerance is the max % of price different you're willing to accept, when the expected executing price is out of the %, transaction fails & gas consumed

What causes high slippage

1. High trading volume

   • when a DEX is experiencing a high trading volume, the fluctuation of token price can be high when you 'processing a transaction'

   • the longer the transaction takes to process, the more chance a price difference occurs that causes higher slippage

2. Low Liquidity

   • when the liquidity depth (size of pool) is not high enough compared with a single trading volume, price changes significantly after the trade

   • a high volume trade is broken up into parts to be executed at different prices, the more an asset is sold or bought, the more the price slip away from the market rate

Advantage vs. traditional financial services

• Decentralised - no centralised entity, minimise service fees

• Instant - direct interaction between wallet & smart contract, almost no processing time

• Transparent - can always trade at best rate in real time

• Best interest for both bid & ask side - map directly bid & ask to optimise rate