Answer: Slippage is a common phenomenon that occurs in all types of trading. It is the difference between the expected price of a trade and the actual price at which the trade is executed. On a DEX, slippage can occur due to the lack of liquidity, as there may not be enough buyers or sellers to match the desired order. This can lead to a difference between the expected and actual price of the trade. In addition to slippage, fees are another major friction point on a DEX. These fees are usually much lower than those charged on a centralized exchange, but they can still add up over time. Therefore, it is important to understand the fee structure of a DEX before trading to ensure you are getting the best deal.
