Why can a DeFi token swap have a much worse price than the quoted market price?

A large order relative to available liquidity creates price impact; slippage settings, MEV and fees can further change execution.

The answer

A large order relative to available liquidity creates price impact; slippage settings, MEV and fees can further change execution.

What to do next

Check trade size versus pool depth, quoted minimum output and fees. Consider splitting an order only when that actually improves total execution after fees.

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Frequently asked questions

Is a quoted exchange price the same as guaranteed execution?

No. The actual pool reserves and execution conditions determine the trade result.

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