💡About Slippage
Last updated
Last updated
Slippage: determines the price when buying and selling, and the deviation between the price of the smart wallet
When buying, the slippage price is calculated as 1/(1-slippage)
eg. If you set a 20% slippage, if the smart wallet buy price is 1, you can accept a maximum of 1.25 buy; if you set a 50% slippage, you can accept a maximum of 2 buys;
When selling, the slippage price is calculated as 1-slippage
eg. If you set 20%, if the smart wallet sell price is 1, you can accept a minimum of 0.8 sell; if you set a 50% slippage, you can accept a minimum of 0.5 sell.
In the DBot settings, [Slippage Tolerance] refers to: the difference between the actual transaction price and the expected price, the difference multiple = 1/(1-slippage)
eg. If you set a slippage of 50%, you can accept a maximum of 2 times the price difference, and 100% means no limit on the price difference
It is recommended to set the slippage within a reasonable range. 50% slippage means that you can accept a 2x price to buy, and 100% means that you can accept any price to buy. The price calculation method for slippage tolerance is 1/(1-slippage). This depends on your copy trading needs and risk preference.
Unless it is a popular coin or a very optimistic token, we do not recommend setting a huge slippage. We have also strengthened the risk warning in this part.
The situation on the chain is complicated. It is recommended to set the slippage reasonably according to your personal needs, the style of the smart wallet (the popularity of the token), and other factors. It is not recommended to set too high slippage for large-amount purchases. It is recommended to use the Anti-MEV mode for large-amount and high-slippage transactions.
Note: Due to the contract mechanism of Pump & Moonshot, transactions and follow-ups are carried out according to the number of tokens. Therefore, slippage may cause the actual consumption of SOL to be more/less than the filled purchase amount (the default limit of the maximum slippage is 50%). The limit can be lifted in "Settings-General Settings"
Why does it still fail after setting 10% slippage?
10% slippage means that only 11% price fluctuations are accepted. For example, if a pin triggers a sell, the subsequent price may fall for a short period of time, which may lead to failure. It is recommended to make adjustments in time according to the feedback of copy order failure and personal trading needs.
Why did the Pump & Moonshot transaction fail even though the slippage was set to 100%?
The transaction method of Pump & Moonshot is to fix the number of tokens purchased and adjust the number of SOL consumed. The upper limit of the actual consumed SOL is: SOL / (1-slippage). If 1 SOL is filled in and the slippage is 20%, the upper limit is 1/(1-0.2)=1.25 SOL. If the slippage is 100%, it means that there is no upper limit, which may exhaust all the SOL in the wallet.
To ensure the safety of user funds, we have limited the maximum slippage of Pump & Moonshot related transactions (including copy orders, limit orders, and fast buy and sell) to 50%. You can go to "Settings-General Settings" to lift this limit.
