Slippery Slippage

    The sippage is the difference between what users paid and what users received. Sometimes, it could be so high and some users avoid the platform or the pool to join. THey try to select the platform that offers the best slippage to join. Today, I will compare top 5 pools on Sushiswap in comparison to top 5 pools on Uniswap.

    To do that, I have selected the top 5 pools from dex_liquidity_pools in terms of TVL for each platforms. For Uniswap, I have taken into account the Uniswap v3 pools. Once the pools are selected, then I computed the swaps done on each pool and I compared the amount in and the amount out, and I extracted the percentage fee of 0.3 applied in Sushiswap from the percentage of the slippage. Finally, I calculated the average for each pool. The same was done for Uniswap, however, in this case, the fee percentage applied vary on the pool.

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    The slippage on top pools on Sushiswap goes from -0.6 to 0 in the major of the cases. The pools have similar average slippage over time. BIT-WETH and ILV-WETH are the pools with less daily average slippage, which is around -0.4 and 0. USDC-WETH and WBTC-WETH have similar average slippage around -0.5. Finally, TOKE-WETH have more variations over time from around -1 to 0.7.

    In the case of Uniswap, there are one non-evaluated pool because of discrepances with slippage values. The rest of the pools are shown in the chart. In this case, three of these pools have similar average daily slippage around -0.1 and close to 0. The unique pools that have higher average slippage is WBTC-WETH pool with an average slippage between -0.7 and -0.5.

    Then, it can be concluded that the slippage on Sushiswap is higher for the top 5 pools of the platform compared to the top 5 pools in Uniswap. While the global slippage average on Sushiswap seems to be around -0.5, for Uniswap this value is lower due to the major of the pools have an slippage close to 0.