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Price Impact Too High On PancakeSwap? Here How To Fix

Price Impact Too High On PancakeSwap

PancakeSwap, for example, makes it easy to buy and sell digital currency without having to go through a big company. There are problems with these platforms, but there are also good things about them. The “Price Impact Is Too High” error happens when you try to make a transaction on PancakeSwap. The V2 version of the exchange is usually the one that has this problem. This can be not very pleasant because it means you won’t be able to liquidate your tokens. Why does the “Price Impact Too High” error happen, and what can you do to fix it?

On PancakeSwap, What Is Price Impact Too High?

People who use decentralized exchanges, like PancakeSwap, have a mechanism called “price impact.” This mechanism makes it so that the purchase price of a token is inversely related to its value. For example, to buy a token for $10, the exchange will think about how much that is worth in percentage terms. If $10 is 20% of the liquidity in the pool, the price impact mechanism will raise the price of the transaction. The higher fee makes big trades less likely to happen, which helps keep the trading pool stable. A “Price Impact Too High” error means that you will lose a lot of money if you receive to complete a transaction. The impact on the liquidity pool is directly related to the price. It shows how your transaction affects the money in the pool. In this impact, when you try to buy tokens in high supply, the price will go up a lot.

Why Is PancakeSwap’s Price Impact Too High?

The “Price Impact Too High” error started in PancakeSwap when the platform switched to a new exchange version in April 2021. Still, some liquidity pools were in V1 and hadn’t switched to the new platform when moving from V1 to V2. There was less capital in V2 as a result, which caused the price impact mechanism to work when there were a lot of big transactions. As a result, people who use PancakeSwap can no longer use the V1 version of the platform. Well, as more developers move their funds to the new exchange, “Price Impact Too High” errors should decrease because more people will use the pools.

On PancakeSwap, How To Fix Price Impact Too High?

PancakeSwap has a problem called “Price Impact Too High.” However, there are a lot of ways to resolve it. These troubleshooting steps will let you swap or liquidate your tokens.

Switch To The Older Version Of PancakeSwap

The “Price Impact Too High” message7 shows up in PancakeSwap because there isn’t enough liquidity in the V2 platform. While developers are moving to V2, you can switch back to V1 to do your transactions. Developers are moving to the new exchange, but some still have most of their funds in V1. Check out how to go back to PancakeSwap V1 version.

1 – First, open PancakeSwap. Connect your cryptocurrency wallet.

2 – Now, scroll down to the bar at the bottom of the PancakeSwap page.

3 – Next, tap V1 (old), located at the center of the bar.

4 – Here, a pop-up message will appear informing you that V1 is no longer supported.

5 – Check the box that says you understand the pop-up message.

6 – Lastly, hit the “Continue to V1 anyway” button.

You’ll now have moved from the V2 platform, the default setting. You can carry out transactions without the “Price Impact Too High” error. The token you’re trying to swap will probably be available in the old exchange version as the developer prepares to migrate.

Make Smaller Transactions

Well, the price impact mechanism calculates the percentage of liquidity you’re interested in buying or swapping. Also, The higher the percentage, the higher the fees. You could carry smaller transactions to get around the “Price Impact Too High” error. In this case, they will equate to a smaller percentage of the liquidity pool and shouldn’t trigger the price impact mechanism. Of course, to deal with small trades, you might have to make a lot of different transactions. However, if you follow this method, you’ll be able to liquidate your tokens without losing a huge chunk of your money.

Increase Slippage Tolerance

Changes to the price slippage on PancakeSwap could solve the “Price Impact Too High” error message that people get. It’s called “Slippage,” which is the difference between the expected price of the trade and the price at which the exchange occurs. It happens when there is high volatility or as a result of a lengthy transaction process. To clear up the “Price Impact Too High” message, you could raise the slippage tolerance of a transaction. You can do that on PancakeSwap by following these simple steps.

1 – First, open PancakeSwap and go to “Settings,” located in the top left corner.

2 – Now, Scroll down to “Slippage Tolerance.”

3 – Here, Input the slippage tolerance you desire.

There will be more room to carry out your trade with a higher tolerance for slippage. Further, changing the tolerance should clear the “Price Impact Too High” message. It is very important to find the sweet spot when choosing the slippage tolerance. Too high tolerance will let you complete the transaction, but it could leave you open to front-runner attacks. A front-runner attack is when someone else sees your trade after it is broadcast and before it is done. They will then get their transaction approved before yours, making a lot of money. Another thing that will make the transaction not work: is a slippage tolerance that is too low will make the transaction fail.

Check Internet Speed

Well, you receive a “Price Impact Too High” message may be because your internet speed is too slow. A slow connection can make it take longer to complete a transaction. Longer transactions allow for price fluctuations that can trigger the price impact mechanism. If you want to ensure your connection is working well, do a speed test on sites like SpeedTest.

Change Browser

It’s possible that your browser is to blame for the “Price Impact Too High” error that pops up. Switch to a new browser and relaunch PancakeSwap to see if that rectifies the problem.

Also, Check:

FAQs:

Can The Price Impact Be Advantageous? 

Yes, there are times when the price impact mechanism can work in your favor, but it can also work against you. For example, if you want to make a token swap that adds to the liquidity pool, you may be able to trade at a discounted rate. This is called an arbitrage opportunity and can be pretty profitable.

Retrieve Your Tokens

Sometimes, when you try to buy or swap tokens on PancakeSwap, you may get a message that says, “Price Impact Is Too High.” This error usually happens because there isn’t enough liquidity in the trading pool. Well, as more developers migrate from the older version of the exchange, the capital supply problems in V2 should resolve themselves. Meanwhile, you can use the tips in this guide to retrieve your tokens without surrendering a large amount of money. Do you use PancakeSwap to trade? Have you had a “Price Impact Too High” error? Let us know how you solved your problem if you want.

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