How to Increase High Slippage for Your Token: A Creator's Guide
High slippage can prevent your token from being traded efficiently, frustrating potential buyers and limiting growth. This guide explains what slippage is, why it matters for new tokens, and actionable steps you can take to adjust it for better trading performance. We'll cover settings on DEXs, liquidity pool management, and strategies to make your token more accessible.
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The Problem
Traditional solutions are complex, time-consuming, and often require technical expertise.
The Solution
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What is Slippage and Why Does It Matter for Your Token?
Understanding this core trading mechanic is the first step to fixing it.
Slippage is the percentage difference between the price you expect to pay for a token and the price you actually pay when the trade executes. For new tokens with small liquidity pools, even modest buy orders can significantly move the price, requiring higher slippage tolerance (e.g., 10%, 15%, or more) for trades to succeed.
If slippage is set too low, trades will fail repeatedly, creating a poor user experience and deterring new buyers. As a creator, managing slippage is crucial for ensuring your token is tradable and can grow its holder base. High required slippage is often a symptom of insufficient liquidity relative to trading demand.
How to Adjust Slippage Settings: Step-by-Step
You can instruct your community or adjust settings yourself on popular decentralized exchanges (DEXs). Here’s how:
Beyond the Setting: Long-Term Fixes for High Slippage
Temporary settings won't build a lasting project.
Manually increasing slippage is a temporary fix. To build a sustainable token, address the root cause: liquidity depth.
1. Increase Your Liquidity Pool Size
Adding more token and paired asset (e.g., SOL, ETH) to the pool is the most direct method. A larger pool absorbs larger trades with less price impact. Consider locking a portion of liquidity to build trust.
2. Launch with Stronger Initial Liquidity
Using a launchpad that emphasizes liquidity, like Spawned, can set a better foundation. Instead of a tiny pool, aim for an initial liquidity that matches your expected early trading volume.
3. Encourage Distributed Liquidity Provision
Incentivize your community to provide liquidity by offering rewards or a share of trading fees. More liquidity providers deepen the pool from multiple sources.
4. List on Centralized Exchanges (CEXs)
While not immediate, CEX listings provide order-book trading with minimal slippage for users, taking pressure off the DEX pool.
Launchpad Choice Impacts Your Slippage Battle
Your launchpad decision is a long-term liquidity decision.
Where and how you launch your token sets the stage for its early trading health, including slippage. Many basic launchpads focus only on the token creation event, leaving you with a minimal, unmanaged liquidity pool.
A platform like Spawned is built for creator success beyond the launch. It provides tools and a fee structure designed to support healthier liquidity from day one:
- Creator Revenue: 0.30% from every trade creates a sustainable budget to reinvest in pool growth or marketing.
- Holder Rewards: 0.30% ongoing rewards encourage holding, which can reduce volatile sell pressure that exacerbates slippage.
- Post-Graduation Model: A clear path with 1% perpetual fees via Token-2022 programmatically funds ecosystem development, including liquidity initiatives.
Launching here means you start with more than just a token; you start with an economic model that actively works to improve trading conditions over time, directly combating the high-slippage environment common to abandoned launches.
The Verdict: How to Truly Increase High Slippage Tolerance
Short-term settings change, long-term liquidity building.
For immediate relief, guide your community to increase slippage settings to 8-15% on DEXs when trading your new token. This is a necessary band-aid.
For a real solution, focus on aggressively growing your token's liquidity pool. Allocate resources from your treasury or creator fees to consistently add to the pool. The most strategic approach is to launch on a platform that builds sustainable liquidity growth into its model, rather than treating liquidity as an afterthought.
High slippage is a solvable problem. It requires moving beyond temporary settings adjustments and committing to the ongoing liquidity depth that defines a professional, tradable asset.
Ready to Launch a Token with Better Liquidity from Day One?
Stop planning for slippage problems and start building a token designed for smooth trading. Spawned provides the Solana launchpad and AI website builder to launch your project with an economic model that supports liquidity growth.
- Launch Fee: Just 0.1 SOL (~$20).
- Built-In Advantages: Creator fees and holder rewards from the first trade.
- AI Website Included: No extra $29-99/month cost.
Launch your token on Spawned and set a new standard for your trading experience.
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Frequently Asked Questions
For established tokens, slippage is often below 1%. For a new token with low liquidity, 'normal' can be much higher. It's common for new launches to require 5% to 15% slippage tolerance in the first days or weeks. The goal is to gradually reduce this requirement by increasing liquidity.
Yes. Excessively high slippage (e.g., 50%+) makes you vulnerable to sandwich attacks, where bots exploit the large price tolerance to profit at your expense. It can also result in you receiving far fewer tokens than expected if the price moves. Use the minimum slippage that allows trades to succeed consistently.
If the initial liquidity is locked but small, your main lever is to create additional liquidity pools. You can fund a new LP (Liquidity Pool) pair on the same or a different DEX. Alternatively, use revenue from the 0.30% creator fee (if your token has one) to buy and add more liquidity to the existing pool over time.
Generally, yes. Slippage is a function of trade size relative to pool size. A $1,000 trade will cause less price impact in a $100,000 pool than in a $10,000 pool. Therefore, increasing total value locked (TVL) in your liquidity pool is the most reliable method to lower the slippage percentage needed for trades.
pump.fun launches tokens with a bonding curve and no ongoing fees, often resulting in a very small final liquidity pool. Spawned uses a traditional AMM pool and generates a 0.30% creator fee per trade. This creates a recurring revenue stream you can use to systematically grow your liquidity pool, directly addressing the core cause of high slippage.
For simplicity, 'Auto' is good for beginners as the DEX calculates a needed rate. However, for a token with known volatility, providing a specific manual range (e.g., 'Set slippage to 12%') can be more reliable and prevent repeated failed transactions, improving the buyer experience.
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