Slippage
The difference between the expected price of a trade and the actual price you receive when the trade executes.
Slippage happens because prices can change between when you submit a trade and when it's confirmed on the blockchain. On DEXs, slippage also depends on pool liquidity. If you're swapping a large amount relative to the pool size, your trade moves the price against you.
Most wallets and DEXs let you set a "slippage tolerance," the maximum price movement you'll accept. If slippage exceeds your tolerance, the transaction fails. A typical setting is 0.5-1% for major tokens.
For USDC specifically, slippage is minimal when trading against major pairs (USDC/ETH, USDC/USDT) on liquid DEXs. You'll see more slippage on smaller chains or exotic token pairs.
Related Terms
Swap
Exchanging one cryptocurrency for another, typically done through a DEX or exchange.
DEX (Decentralized Exchange)
A cryptocurrency exchange that operates through smart contracts, allowing users to trade directly without an intermediary.
Liquidity Pool
A smart contract holding paired tokens (like USDC/ETH) that enables trading on a decentralized exchange.
Liquidity
How easily an asset can be bought or sold without significantly affecting its price.
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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.