Price Impact and Slippage

In this section we will learn how Fyda protects users trades from price impacts and slippages

Price impact is basically difference in the price of the token when swapped compared to the actual price of the token. On the other hand, slippage refers to the difference between the expected amount and the received amount - it's due to competing transactions that pushed the price lower after the first transaction was submitted.

We allow users to set maximum price impacts for buy, floor and sell orders to protect their trades being executed at higher price impact then what they would agree to. Fyda uses onchain price sources such as Chainlink, Uniswap TWAP oracle and so on to get the prices of tokens and compare with the actual swap price.

Slippage is specified during trade execution by the trading bots themselves to prevent sandwich attacks.