All you need to know about price impact on decentralized exchanges
Ever swapped tokens on a DEX and wondered why the price suddenly shifted before your trade was confirmed? That’s price impact in action. Unlike centralized exchanges (CEXs), where order books match buyers and sellers, decentralized exchanges (DEXs) use liquidity pools to execute trades. This means your trade size directly affects the price of an asset, sometimes more than you’d expect.
If you’re serious about optimizing your trades and avoiding unnecessary losses, understanding price impact is key. Let’s dive in!
Understanding Price Impact
What is Price Impact?
Price impact refers to how much your trade moves the market pric