Slippage refers to the difference between the expected price of a transaction (like swapping tokens) and the actual price at which it gets executed. This often occurs due to price changes between the time you initiate the transaction and the time it is confirmed on the blockchain.
Here are some key points about slippage:
Why It Happens: In fast-moving markets, especially when trading tokens with low liquidity or during times of high volatility, prices can change quickly. By the time your transaction is processed, the price may be slightly higher or lower than when you started.
Impact on Trades: If slippage is too high, it can result in a less favorable trade. For example, if you're swapping tokens and the price changes too much during the transaction, you might end up with fewer tokens than you expected.
How to Manage It: Many wallets, including Veera, allow you to set a "slippage tolerance" – the maximum percentage of price change you're willing to accept for your trade. If the slippage exceeds this tolerance, the transaction will fail instead of proceeding at a worse price.
In short, slippage is a natural part of trading in decentralized markets, especially when dealing with volatile assets or low-liquidity tokens. By setting slippage tolerance, you can control how much price difference you're willing to accept.
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