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Slippage Prediction Models Meaning

These are mathematical models used by high-frequency traders and DeFi protocols to forecast how much a specific trade will move the market before it is even placed. By analyzing the current "Order Book Depth," historical "Volatility," and real-time "Network Latency," these models provide a "Confidence Interval" for the final execution price.In a "Constant Product" AMM (like Uniswap v2), slippage is purely a function of the trade size relative to the pool size: Δy=y−x+Δxk

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