> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dyxy.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Routing and slippage

> How DYXY finds the best route for a swap, and how slippage protects you.

## 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.

The **Route** section of the swap panel shows every exchange and hop, and the share of your trade that goes through each.

> [!NOTE]
>
> 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

| Token type | Suggested tolerance |
| - | - |
| Stablecoin to stablecoin | 0.1% or less |
| Major tokens such as ETH, BTC, SOL, BNB | 0.5% |
| Mid-cap tokens | 1% |
| Small, volatile or new tokens | 2% to 5% |
| Tokens with a transfer tax | Above the tax, for example tax plus 1% |

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.

> [!WARNING]
>
> Avoid setting slippage above 5% unless the token requires it. If a swap only works with very high slippage, check the token's liquidity and contract before trading.

## 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.


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