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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.
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.
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.
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.
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.
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.
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.
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.
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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