Decoded Intelligence Signal
Price Impact
intermediate
market_structure
Verified: May 26, 2026Lexicon Core Definition
The change in an AMM's exchange rate caused by a single trade — larger trades relative to pool size produce greater price impact. A 1% price impact means you receive 1% fewer tokens than the pre-trade rate would suggest; this is the AMM equivalent of market impact.
Analysis Breakdown
The change in an AMM's exchange rate caused by a single trade — larger trades relative to pool size produce greater price impact. A 1% price impact means you receive 1% fewer tokens than the pre-trade rate would suggest; this is the AMM equivalent of market impact. Full explanation coming soon when Journey 12 content is ingested.