Constant Product Formula vs Slippage

Quick comparison to help you distinguish these two crypto terms.

Constant Product Formula
intermediate
fundamentals

The constant product formula is the mathematical rule used by most AMMs to price tokens, maintaining the product of two pool token quantities as a fixed constant across every trade.

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Slippage
beginner
market_structure

Slippage is the difference between the price you expected to receive on a trade and the actual price at which it executed, caused by market movement or insufficient liquidity.

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