What is Slippage?
The difference between the expected price of a trade and the actual executed price. Lygos Finance’s DLC-based liquidations rely on oracle price attestations and pre-signed contract outcomes for its $25K–$100M loans.
Glossary
Slippage
The difference between the expected price of a trade and the actual executed price.
Full Definition
Slippage occurs in markets with high volatility or low liquidity. When a user places a large market order, the lack of available buyers or sellers at the exact current price means the order fulfills at progressively worse prices. In automated liquidations, severe slippage can drastically reduce the value recovered by a lender.
How Lygos Uses This
Lygos Finance’s DLC-based liquidations rely on oracle price attestations and pre-signed contract outcomes for its $25K–$100M loans.
Why this matters for borrowers
Understanding Slippage provides context for how Bitcoin lending fits into the broader financial ecosystem. DeFi concepts are reshaping how people think about borrowing and lending.
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