What Does Uniswap Price Slippage Mean?
What does Uniswap price slippage mean? The price of Uniswap is adjusted by users
What does Uniswap price slippage mean? The price of Uniswap is adjusted by users calling the token amounts on the decentralized exchange’s contract.
Specifically, if a trading pair has 100 ETH or 200 USDT (currently 400 units), but only 5 tokens, and there are no other currencies available for trading in the liquidity pool; if a trading pair has a 1 BTC fund pool, then the LP could be partially drawn off. In other words, if the trading volume of this trading pair exceeds $5 million, the slippage will be very low. This means that when you exchange all your tokens for USDC, slippage will occur because your fund pool has a lot of USDC. Therefore, if you want to transfer these assets to another trading platform, you need to withdraw all these assets from your wallet.
So, in Uniswap, there is a significant slippage, which makes it difficult for some tokens to enter the exchange, and many of these assets are prone to price drops. For example, in Sushiswap and 0x protocols, some projects cash out their tokens on some trading markets first due to high slippage, arbitrage for profit, and then sell them, resulting in the loss of their profits.
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