Price impact FAQ#
Price impact is the change your swap causes in an AMM pool's price. A larger trade against shallower liquidity has greater impact.
Is price impact a fee?#
No. It comes from moving along the pool's pricing curve. The pool fee is separate: v2 uses 0.30%, while v3 has 0.01%, 0.05%, 0.30%, and 1.00% tiers.
How does v2 create impact?#
A v2 pool maintains x · y = k. Adding one token and removing the other changes the reserve ratio throughout the swap, so later units execute at a worse rate than earlier units.
How does v3 create impact?#
A v3 swap uses active liquidity at the current tick and may cross into additional ranges. Total deposited value can be large while active liquidity near the current price remains small.
Is price impact the same as slippage?#
No. Price impact is included in the quote based on your amount and current pool state. Slippage is movement between the quote and onchain execution. Raising slippage tolerance does not reduce impact.
Why does a chart show a better price?#
A chart may show the last small trade, a different pool, an inverted pair, or stale data. It does not guarantee enough liquidity for your amount.
How can I reduce price impact?#
Verify the token contracts, compare available routes, reduce the amount, or split the trade over time. Splitting creates additional CTN network costs and does not guarantee a better market.
When should I stop?#
Stop when the minimum received is materially below your expectation, the token contract is unverified, the pool is extremely thin, or the interface shows an extreme-impact warning you cannot explain.
Can high impact indicate a scam?#
It can. Fake or unsellable tokens often use thin or manipulated pools. High impact alone does not prove fraud, but it is a reason to inspect token controls, liquidity, and recent transactions.
What happens after my swap?#
Your trade changes the pool price. Arbitrage may later move it toward prices in other markets, but alignment is not guaranteed when liquidity or access is limited.