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Price impact refers to the effect of your trade on the price of an asset within a pool. When a large order is executed, it can cause the price of the asset to increase or decrease, respectively, due to the AMM algorithms.
Price impact is important as it affects the execution price and slippage of your trade. Stella provides you the following:
- 1.Price Impact on Supplied Asset.This refers to price impact on your supplied asset/ input only
- 2.Price Impact on total positionThis refers to price impact on the total position after leverage and swap through Stella
You can adjust your slippage and transaction deadline in the settings. In the scenarios where a large slippage occurs, it is recommended to review your transaction carefully. In the case of large price impact on supplied asset, Stella will require some extra confirmation before execution.