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I have been looking for an answer to this question for a while but haven't found a reasonable explanation yet.

While attempting to swap ETH for USDT on quickswap , I noticed that I would need 3496.1 USDT to buy 1 ETH.

However when I click on the swap arrow , it shows that if I were to swap back the 1 ETH I'd get back only 3471.24 USDT thus losing 25 USDT almost instantly. enter image description here

What causes this price discrepancy?

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  • It's called price impact and is caused by the changes in the pool's asset composition due to your trade, as well as the trading fees.
    – kfx
    Apr 3, 2022 at 18:26

1 Answer 1

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You are paying 0.30% fee to liquidity providers.

This will change the outcome either buy or sell way.

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