Avoid High Slippage: Practical Solutions for Token Creators

Yes, but it requires active management and often additional capital. The most effective method is to add more paired liquidity (e.g., more SOL + tokens) to the existing AMM pool, which directly increases its depth. You can also create LP incentive programs to attract external liquidity providers. In some cases, migrating to a new, better-funded liquidity pool might be necessary, though this requires clear communication with your community.

They serve different phases. A bonding curve is superior for the *initial launch phase* because it algorithmically controls price and slippage, preventing a single whale from dumping the price. However, bonding curves have a maximum capacity. An AMM pool (like on Raydium) is better for *long-term, deep liquidity*. The best practice is to use a bonding curve to bootstrap fairly, then migrate to a permanent AMM pool before the curve is maxed out, combining the benefits of both.

There's no fixed number, but a strong guideline is to provide liquidity equivalent to 10-20% of your intended initial market cap. For a target $10,000 market cap, aim for $1,000-$2,000 in paired liquidity (e.g., 5-10 SOL + an equivalent value of your tokens). On Solana, due to lower fees, you can start effectively on the lower end of that range. The key is that the pool should be large enough to absorb initial community trades without wild price swings.

They are closely related but distinct. **Price impact** is the effect your trade has on the market price due to the pool's liquidity depth. It's a direct cause of slippage. **Slippage** is the difference between the price you expect when you submit a trade and the average price you actually receive. High price impact from a large trade in a shallow pool will result in high slippage. Setting a slippage tolerance in your wallet is how you limit the maximum price impact you're willing to accept.

Absolutely. Tokenomics that include a high tax on buys/sells (e.g., 10%+) directly contribute to slippage, as the tax is effectively an additional cost on every trade. Conversely, tokenomics that allocate a small fee (like 0.30%) to reward liquidity providers can *reduce* long-term slippage by incentivizing users to add depth to the pool. Low float, high-supply tokens are also more susceptible to slippage from large percentage trades.

For gaming tokens, especially those expecting micro-transactions, Solana is often the better choice to minimize overall trading friction. Its near-zero transaction fees mean players can trade small amounts without gas costs dominating, which supports a more liquid and active market. You can explore specific strategies in our guide on [how to launch a gaming token on Solana](/use-cases/token/how-to-launch-gaming-token-on-solana). Ethereum L2s like Base are a solid alternative, but the core AMM slippage dynamics are similar.