Glossary

Slippage

The difference between the expected price of a trade and the actual executed price.

What is Slippage?

The difference between the expected price of a trade and the actual executed price. Lygos Finance’s DLC-based liquidations rely on precise oracle data, ensuring transparent execution during volatile market drops and protecting $50K-$50M loan portfolios from hidden centralized slippage costs.

Full Definition

Slippage occurs in markets with high volatility or low liquidity. When a user places a large market order, the lack of available buyers or sellers at the exact current price means the order fulfills at progressively worse prices. In automated liquidations, severe slippage can drastically reduce the value recovered by a lender.

How Lygos Uses This

Lygos Finance’s DLC-based liquidations rely on precise oracle data, ensuring transparent execution during volatile market drops and protecting $50K-$50M loan portfolios from hidden centralized slippage costs.

Why this matters for borrowers

Understanding Slippage provides context for how Bitcoin lending fits into the broader financial ecosystem. DeFi concepts are reshaping how people think about borrowing and lending.

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