Price Impact vs Slippage

Price Impact and Price Slippage are two terms commonly used into describe the outcome of a change in price when swapping cryptocurrency. While the terms are often used interchangeably, it is important to note that they refer to different concepts.

Price Impact refers to the change in token price directly caused by a specific trade. It is reflected as the difference between the current market price and the impact of the trade on the total liquidity in a pool.

Price Slippage, on the other hand, refers to the change in token price caused by the overall movement of the market. It is reflected as the difference between the expected price after a swap and the actual price received after the swap is completed.