StakePoint
Solana DeFi Glossary
Definitions of key terms used in Solana DeFi, token locking, LP locking, and staking. Published by the StakePoint team.
Price Impact
The change in token price caused by a trade's own effect on the liquidity pool.
Definition
Price impact is the change in token price that occurs as a direct result of executing a trade. In an AMM liquidity pool, every trade shifts the ratio of tokens in the pool, changing the price. Larger trades cause greater price impact.
Price impact is proportional to trade size relative to pool liquidity. A $100 trade in a $10,000 pool has significant price impact — roughly 1%. The same $100 trade in a $1,000,000 pool has negligible impact.
Price impact differs from slippage. Price impact is the expected price movement caused by your trade. Slippage is the additional unexpected movement caused by other transactions executing before yours.
StakePoint & Price Impact
StakePoint's Jupiter-powered swap interface displays estimated price impact before users confirm trades. Jupiter's aggregator routing minimises price impact by splitting large trades across multiple liquidity pools.
Related Pages
Frequently Asked Questions
What is price impact in DeFi?
Price impact is the price change your trade causes on a liquidity pool. Larger trades relative to pool size cause more price impact.
How is price impact different from slippage?
Price impact is the expected price movement your trade causes. Slippage is additional unexpected movement from other trades executing before yours.
Related Terms
Slippage
The difference between the expected price of a trade and the actual execution price.
Jupiter Aggregator
A Solana DEX aggregator that finds the best swap route across multiple liquidity sources.
Liquidity Pool
A smart contract holding pairs of tokens that enables decentralised token trading.
DEX Aggregator
A tool that routes token swaps across multiple DEXs to find the best price.