What is slippage?
Slippage occurs when there isn’t enough market liquidity to fulfill an order at the desired price, resulting in the transaction being executed at a less favorable price. In Web3, slippage can be caused by various factors, including insufficient liquidity for a specific asset pair, high cryptocurrency price volatility, and impermanent loss experienced by liquidity providers in mechanisms like automated market makers (AMMs). It’s essential for traders and liquidity providers in Web3 environments to understand slippage and take measures to minimize its impact.
How to adjust slippage in Phantom
- Open up the Phantom swapper tab by selecting the 'Swap' icon indicated by two arrows at the bottom of your wallet screen
- You can adjust the slippage by tapping on its icon located in the upper right corner of the swapper page
Select a slippage value between 0.1% and 30%. Any adjustments to slippage tolerance will persist as the default for the your next swap so be sure to check before each swap! Also we will warn you if slippage is set to over 5% so you don't accidentally overspend when swapping.