The difference between the expected price of a swap and the actual execution price due to pool ratio changes between submission and execution. Users set slippage tolerance (e.g., 0.5-1%) as a maximum acceptable deviation; the transaction reverts if exceeded. High slippage occurs in thin pools or large trades relative to pool depth.
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The difference between the expected price of a swap and the actual execution price due to pool ratio changes between submission and execution. Users set slippage tolerance (e.g., 0.5-1%) as a maximum acceptable deviation; the transaction reverts if exceeded. High slippage occurs in thin pools or large trades relative to pool depth.
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AMMs, routing, liquidity, lending, and trading infrastructure.
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Slippage (slippage) Category: DeFi Definition: The difference between the expected price of a swap and the actual execution price due to pool ratio changes between submission and execution. Users set slippage tolerance (e.g., 0.5-1%) as a maximum acceptable deviation; the transaction reverts if exceeded. High slippage occurs in thin pools or large trades relative to pool depth. Related: Swap, AMM (Automated Market Maker), Price Impact
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The exchange of one token for another through a DEX, either via an AMM pool or an order book. The user specifies an input token/amount and receives output tokens at the current market rate minus slippage and fees. On Solana, swaps settle in a single transaction (~400ms) with fees typically 0.01-0.3% per trade.
A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
The percentage change in a token's price caused by executing a trade against a liquidity pool. Larger trades relative to pool depth cause greater price impact. For example, a $10K trade in a $1M pool causes minimal impact, while the same trade in a $50K pool would move the price significantly. Aggregators minimize price impact by splitting across pools.
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A protocol that unifies fragmented liquidity across Solana's liquid staking token (LST) ecosystem by enabling instant swaps between any LSTs and providing the INF token as a unified liquid staking position. Sanctum solves the cold-start liquidity problem for new LST providers and allows validators to launch their own LSTs.
A token pegged to a stable asset, typically the US dollar. Major stablecoins on Solana include USDC (Circle, natively minted), USDT (Tether), and UXD (algorithmic). Stablecoins are critical DeFi primitives used as trading pairs, lending collateral, and yield farming. USDC on Solana uses the SPL Token program with freeze authority retained by Circle.
The exchange of one token for another through a DEX, either via an AMM pool or an order book. The user specifies an input token/amount and receives output tokens at the current market rate minus slippage and fees. On Solana, swaps settle in a single transaction (~400ms) with fees typically 0.01-0.3% per trade.
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The exchange of one token for another through a DEX, either via an AMM pool or an order book. The user specifies an input token/amount and receives output tokens at the current market rate minus slippage and fees. On Solana, swaps settle in a single transaction (~400ms) with fees typically 0.01-0.3% per trade.
A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
The percentage change in a token's price caused by executing a trade against a liquidity pool. Larger trades relative to pool depth cause greater price impact. For example, a $10K trade in a $1M pool causes minimal impact, while the same trade in a $50K pool would move the price significantly. Aggregators minimize price impact by splitting across pools.
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A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
An AMM design where liquidity providers concentrate their capital within specific price ranges instead of across the full 0-to-infinity range. CLMMs dramatically improve capital efficiency—LPs earn more fees per dollar deposited within their active range. If the price moves outside the range, the position becomes inactive. Orca Whirlpools and Raydium CLMM are leading implementations on Solana.
A smart-contract-held reserve of two or more tokens that enables trading via an AMM. Users deposit token pairs in specified ratios to become liquidity providers and earn trading fees. Pools are identified by their token pair and fee tier. Pool depth (total value locked) determines price impact for trades.
A token issued to liquidity providers representing their proportional share of a pool's reserves and accrued fees. LP tokens can be burned to withdraw the underlying assets. The value of LP tokens changes as the pool's token ratios shift and fees accumulate. LP tokens are often stakeable in yield farming programs for additional rewards.