When exchanging the smallest possible amount of USDC/WETH - 0.000001 USDC - on Uniswap V3 the price impact soars to 99.95%.
Is this accurate, or is this an error in price impact estimation? Why is this high estimation appearing?
The price impact diminishes as the swap amount increases:
USDC amount | price impact | |
---|---|---|
0.000001 | 99.95% | |
0.00001 | 9.0% | |
0.0001 | 0.7% | |
0.001 | 0.00000000035% | |
0.01 | 0.0000000027% | note the price impact grows again as expected |
0.1 | 0.000000026% |
Same happens when doing the inverse for WETH/USDC, or for other pairs such as WBTC/DAI, etc.
I got these estimations from the Uniswap Interface and where it displayed 0.00% I used the price impact estimation logic from the https://uniswap-python.com/