You set slippage to 0.5% but the pool has $8k of liquidity and you buy $2k. Most likely:
You swap $500 into a coin with a $50,000 liquidity pool versus swapping the same $500 into a coin with a $5,000 pool. Compared to the deep pool, your price impact on the shallow pool will be:
If you set your slippage tolerance too low on a swap during a volatile moment, what is the most likely outcome?
Why does buying up a large percentage of a token's liquidity pool cause a big price impact?
A swap screen shows price impact of 3% but your slippage tolerance is set to 1%. What is the likely result?
Setting your slippage tolerance very high (like 20%) on every trade mainly increases your risk of: