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Zero-slippage Trading Algorithms Meaning

Zero-slippage trading algorithms are designed to execute trades at a specified price or within a very narrow price band, eliminating or minimising slippage. These algorithms often route orders through multiple liquidity pools or order books, splitting the order to avoid moving the market.

In decentralised finance, some protocols use virtual order books or sophisticated Automated Market Maker (AMM) models that adjust liquidity dynamically to provide trades at a fixed price for small amounts.

While zero slippage is hard to achieve for large trades, these algorithms improve pricing precision and can enhance the user experience.

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