The PancakeSwap price impact is too high (solution)

By reading the article “How to Resolve the Price Impact Too High Error” featured in Adaas Investment Magazine, you will gain an understanding of this issue and be provided with general solutions.

error fixes for Price Impact Too High

There is an issue that some decentralized exchange users, specifically PancakeSwap, experience with certain transactions, which is the ‘Price Impact Too High’ error. This is a hindrance that impedes their transactions.

There are several approaches to resolving the “Price Impact Too High” issue in decentralized exchanges, and here we will explain the most effective tactics for dealing with this issue.

Fix the issue of Price Impact Being Too High.

Adaas Investment Magazine has outlined three potential solutions to this error that you should consider.

A version update for Exchange

One effective way to address this issue is to employ different versions of decentralized exchanges. How many variations are available for a decentralized exchange?

The PancakeSwap DEX is available in both its V1 (legacy) and V2 formats. To switch between the two versions, head to the Swap section located slightly below the main page, where the option to switch between V1 and V2 will be visible.

Limit your purchases and organize your transactions.

We can address the issue of buying cryptocurrencies in very small amounts of dollars due to their low price by decreasing the number of assets we are looking to trade and conducting a few transactions to purchase or sell the required amount.

Increased tolerance for price alterations

To trade cryptocurrencies in decentralized exchanges like PancakeSwap, when presented with a “Price Impact Too High” error, changing the price slippage to complete the transaction may be the answer.

Sometimes, due to drastic changes in price and the extended amount of time it takes to register a purchase or sale in a decentralized exchange, it can be beneficial to increase the price slippage to get the transaction done. 

To do this, in PancakeSwap DEX, you can press the gear icon and then adjust the price slippage tolerance before confirming.

Other groundwork options

Other potential solutions such as connecting to a faster internet connection, switching to another mobile phone or laptop, and even trying a different browser can help resolve the issue of too high prices. 

You can also contribute your experiences in the comments section to help other users find their answers quickly.

The below-published practical information will help increase your understanding of this error, allowing you to be more aware of its characteristics.

How does price impact work?

The Price Impact mechanism results in the purchase or sale price of an asset on a decentralized exchange being inversely related to its worth.

When someone desires to purchase a token with a value of $1, the exchange will typically accept this price. 

However, if the individual wishes to buy 20% of the available liquidity for that token, the Price Impact mechanism of the exchange will increase the cost significantly. Consequently, there is no practical benefit for the whale to undertake this transaction, leading them to abandon it.

The same principle holds true when it comes to the trading of tokens, with the cost of a single token being different from that of 1000 tokens, depending on the amount of token supply and the availability of liquidity pools to the exchanges.

The Price Impact system is designed to counter the effects of whales when they purchase or sell significant amounts of tokens, adjusting the price depending on the order volume.

final words

At Adaas Capital, we hope that this article, published in Adaas Investment Magazine, will give readers a comprehensive understanding of the Price Impact Too High error in PancakeSwap and its potential solutions. To further improve the article, we invite readers to please share it with their networks and submit their comments.


Q1. What is The PancakeSwap price impact? 

A1. The PancakeSwap price impact is an automated process that adjusts the price of tokens on the PancakeSwap platform. It uses a pricing algorithm to adjust the prices of tokens depending on trading activity and demand.

Q2. What is causing the PancakeSwap price impact to be too high? 

A2. The PancakeSwap price impact can be too high due to a number of factors, including high trading volume, low liquidity, and market manipulation.

Q3. What is the solution to the high PancakeSwap price impact? 

A3. The best way to address the high PancakeSwap price impact is to increase liquidity and reduce trading volume. This can be done by encouraging trading in smaller denominations and introducing incentives for market makers. Additionally, PancakeSwap has introduced a range of features to help manage market volatility, such as automated market stabilization, which can help bring the price impact down.

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