Slippage is the difference between the price you want to buy at and the actual price you have to pay. This happens more often on DEX exchanges. And here are the reasons leading to it.
🔹 Liquidity is quite weak
When you buy a large amount of tokens in a place with weak liquidity, your buy order will push the price of that token up immediately. As a result, the last tokens in your order will be bought at a much higher price than you wanted.
🔸 The cause may be due to market fluctuations
When you press the Swap button, the market price jumps continuously. If the price changes too quickly before the order is confirmed on the Blockchain, you will experience slippage.
🔹 Sandwich Attack
If you set your slippage tolerance too high, such as 5% or 10%, MEV Bots will sandwich your orders. They buy before you to push the price up, then immediately sell into you to profit from the spread.
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This article is for reference only and is not investment advice. Please read and consider carefully before making a decision.