Penguinswap
Creditcoin DocsCredit WalletPenguinswapCC Enterprise
Penguinswap
Creditcoin DocsCredit WalletPenguinswapCC Enterprise
  • How to Connect using Credit Wallet
  • General
    • What is an approval transaction
    • How to swap tokens
    • How to change slippage
    • What is price impact?
    • What are Penguinswap's fees?
    • What are token warnings?
    • Claiming fees
    • How to add liquidity
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  1. General

What is price impact?

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Last updated 4 months ago

Price impact refers to the immediate effect your swap has on a token's price. Swapping a large amount relative to the liquidity available in the pool will result in a greater price impact.

For example, if you attempt to buy 1,000 CTC in a CTC/USDC liquidity pool that holds only 5,000 CTC and 5,000 USDC, your trade will significantly move the market. This results in receiving fewer USDC per CTC compared to swapping a smaller amount, such as 10 CTC Price impact can be seen on Penguinswap on each swap as shown below: