How routing works
When you request a quote, DYXY’s router searches the liquidity on the selected network: AMM pools, concentrated liquidity pools and other onchain venues. It then builds the route that returns the most tokens after fees and price impact. A route can be more complex than one pool:- Multi-hop. If there is no good direct pool between two tokens, the trade passes through an intermediate token. For example, TOKEN → USDC → ETH.
- Split routes. A large trade can be divided across several pools at once, so no single pool takes the full price impact.
DYXY compares routes by what you actually receive, net of price impact and exchange fees. The route with the best headline price is not always the one with the best output.
What slippage is
Slippage is the difference between the price you were quoted and the price you get. It happens because other trades can land before yours and move the price. Your slippage tolerance is the maximum slippage you accept. It sets the minimum received for the swap. If the market moves further than your tolerance, the transaction reverts. You keep your tokens and only lose the gas.Choosing a slippage value
Use Auto slippage to let DYXY pick a value based on the token pair and market conditions.
Too low or too high
- Too low. The swap is more likely to revert during volatile moments. You pay gas for the failed transaction and need to try again.
- Too high. The swap goes through more often, but you accept a worse price. Very high slippage also makes your trade a more attractive target for front-running bots, which can push the price up to your limit before your trade lands.
Price impact versus slippage
These two are often confused:- Price impact is caused by your own trade. It is known before you confirm and is already included in the quote.
- Slippage is caused by other trades that land before yours. It is unknown in advance, so you set a tolerance for it.