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Slippage

Liquidity & market depth

The difference between the quoted price and the executed price on a trade, driven by depth, volatility and routing.

Slippage is the cost of consuming liquidity. On a stablecoin swap it is usually a few basis points; in stressed markets on a thin chain it can dwarf any yield the position earned all year.

Because stablecoin returns are measured in basis points, execution cost is a first-order concern, not a rounding error. A 30bp round trip erases three months of a 1.2% spread.

Why it matters

Any yield or spread comparison is only real after execution and bridging costs are subtracted.

See it in action

Related terms

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