Setting slippage tolerance is a new feature on uTrade V2.
When using an Automated market maker (AMM) any trade moves the price of each of the two tokens being swapped. This movement may be insignificant for asset pools with large liquidity/market cap and/or trades with low volume. But if you place a large swap order for a token with a small market cap or liquidity, you can move the price significantly.
- With Slippage Tolerance, you can set the maximum % of price movement to what you are comfortable with, anything above that, and your order will fail to execute. The default for uTrade is 0.8%, but you can set it to any % you want.
- The Minimum Received indicator is the least amount of tokens you will receive based on your slippage tolerance.
- Setting a deadline ensures that your transaction will revert if it has been pending for extended periods of time.
