DEX Swaps Explained: Slippage, Price Impact, and Fees
Learn to read a swap quote, calculate minimum received, compare total costs, and distinguish slippage from price impact.
Category / DeFi Field Notes
Trading & liquidity.
Look at a pool-based exchange from both sides. A trader needs to understand the quote and its execution limits; a liquidity provider needs to understand inventory changes and the right performance benchmark. The same pool connects these activities, but their costs and incentives are different.
Begin with the swap guide to distinguish price impact from slippage. Then use the worked liquidity example to compare providing assets with simply holding them. Keep all-in costs, the observation period, and the reference asset consistent when comparing outcomes. A quoted fee or projected income figure is not a complete measure of the result, and neither article assumes that a particular token or strategy is appropriate for a reader.
Use the linked guides below for worked explanations, source references, and connected reading. Keep the glossary open when a term needs a definition, and review the limitations of educational material before applying an example to a real position.
