Dec 20, 2022 at 04:38Contents
Decentralized exchanges such as PancakeSwap and Uniswap have grown popular for trading cryptocurrencies on the Binance Smart Chain and the Ethereum blockchain, respectively. Despite their growing popularity among crypto enthusiasts, many DEXes are still far from perfect in terms of usability, as many users of these platforms encounter endless difficulties while attempting to trade tokens regularly.
The “price impact too high” problem, which appea rs in some situations when a user attempts to exchange one token for another, is one of several encountered by users, particularly on PancakeSwap.
If you’re now seeing the dreaded “price impact too high” error on PancakeSwap, you’re not alone; many users have reported this issue. The good news is that there are a few remedies for this problem, and in this piece, you’ll discover exactly what the “price effect too high” mistake means and how to repair it quickly.
What does “Price Impact Too High” mean on PancakeSwap
The price impact of underlying tokens on your trade/transaction is determined by the market price. In layperson’s terms, the inaccuracy indicates that if you continue with the transaction, you may lose a significant portion of your money. The price impact is directly related to the liquidity of the pool; if the token pairings are illiquid, the price impact will be large, and vice versa.
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“Price Impact Too High” indicates that you will lose a significant percentage of your cash when you exchange your tokens. The price impact of your deal is the effect it has on the market value of the underlying tokens. The price impact will be particularly significant for illiquid token pairings. The influence (or impact) of a user’s trade on the value of the underlying asset pair is called Price Impact.
The price impact is exactly proportional to an asset pair’s liquidity. The larger the price effect when somebody swaps a token for another from the pool, the lesser the liquidity of a token pair. The phrase “price impact too large” indicates that there is little to no liquidity in the liquidity pool of the token pair you intend to swap. PancakeSwap will not execute the transaction if there is no or little liquidity in the pool for the token pair you want to purchase, resulting in the error.
How to fix “Price Impact Too High” on PancakeSwap
While there isn’t a get around to the “price impact too high” problem because it may be caused by a variety of factors based on the token pair in question (poor liquidity, few business orders, rug pulls, and more), the solutions listed below should help you get rid of the error on PancakeSwap.
- Change from PancakeSwap V2 to PancakeSwap V1
One of the most common reasons for the PancakeSwap “price impact too high” issue is when the token pair you’re attempting to trade has limited or no liquidity on PancakeSwap V2 (Version 2).
This could be because the token’s liquidity has not been moved from the earlier V1 to V2 or because the token developers are still working on it.
Whatever the reason for low liquidity on PancakeSwap V2 for the tokens you wish to trade is, switching to PancakeSwap V1 from PancakeSwap V2 (assuming the token has some liquidity on PancakeSwap V1) might lower the odds of obtaining the price effect mistake you are attempting to remedy.
- To convert from PancakeSwap V2 to PancakeSwap V1, go to the bottom of the PancakeSwap page and select [V1 (old)].
- When prompted that PancakeSwap V1 is no longer maintained by the PancakeSwap team, choose [I understand that V1….] and click [Continue to V1 Anyway].
- Reconnect your account to PancakeSwap (V1) and pick your wallet under [Unlock Wallet].
- Allow the connection on the wallet and attempt to exchange your tokens again; the error ought to be gone if the token pair is liquid on PancakeSwap V1.
- If this strategy does not resolve the issue on your end, consider some of the additional solutions listed below.
- Turn off Multihops
Because other tokens may operate as a go-between in some circumstances, switching one token for another is not always as straightforward as putting one token in and pulling the other out of the liquidity pool (hops).
The difficulty with this approach is that the token or tokens functioning as a go-between may be experiencing problems at the time, so delaying your transaction. Limiting multi-hops on PancakeSwap guarantees that the deal is direct and, in some situations, eliminates issues preventing your transactions from being processed.
- Tap on the [Settings] icon in the top right-hand corner of the page to disable Multihops.
- To exit the window, tap the toggle next to “Disable Multihops” and click the [X] icon.
- Finally, switch your token(s) to verify whether this resolves the PancakeSwap issue.
- Tokens can be traded in smaller increments
Trading tokens in smaller pieces may not be the ideal choice in terms of costs, but it is one method to avoid the “price impact too high” issue if the token you’re attempting to buy (or sell) has minimal liquidity in the pool.
You can use this way to take gains or cash out of a specific token. Simply minimize the number of tokens you wish to exchange and conduct many deals to accomplish this. The disadvantage of this strategy is that you will be required to pay fees more than once.
Increased price slippage tolerance
When trading cryptocurrency on decentralized exchanges like PancakeSwap, altering the price slippage to finish the transaction might be a solution to the Price Impact Too High error. Due to extreme price volatility and the time-consuming procedure of registering a purchase or sell transaction on crypto exchanges, a rise in price slippage might sometimes aid in completing the deal.
To do this, we tap the gear symbol in PancakeSwap DEX, then try to alter the pricing slippage tolerance and confirm it.
Alternative basis solutions
Other alternatives, such as using high-speed Net, another mobile phone or laptop, or even changing browser applications, might occasionally fix the Price Impact Too High problem. You can also submit your solutions in the comments area so other people may find their answers faster.
Conclusion
The “price impact too high” problem on PancakeSwap is mostly caused by liquidity concerns. If the token you’re attempting to exchange has some liquidity issues, you will almost surely face troubles. Fortunately, various workarounds work to resolve this problem on PancakeSwap, and we have attempted to showcase some of them in this tutorial.
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