How to Fix Price Impact Too High PancakeSwap (3 Solutions)
This error occurs in the latest version of the PancakeSwap exchange. You can fix the price impact too high PancakeSwap error by downgrading to an older version of PancakeSwap, breaking down the transaction into portions, or increasing slippage tolerance.
All the above options can help you solve your problem, but learning the difference between them can save you time and money during the trading or swapping process.
If you see a price impact too high PancakeSwap message, you’re probably trading a pair that doesn’t have the sufficient liquidity your transaction requires. The message works to provide stability to small trading pools by discouraging big trades from taking place in the DeFi space.
So if you want to learn how to fix the price impact too high PancakeSwap error, keep reading—we’ll tell you all about the three solutions and which would work best for you.
- What is the price impact too high PancakeSwap error?
- Why does price impact too high occur on PancakeSwap?
- How do you fix the price impact too high PancakeSwap error?
- Other solutions
What is the price impact too high PancakeSwap error?
The price impact is the influence a trade has on the market price of any pair. It’s the difference between the amount of your input token versus what you’ll receive from the output token in a swap.
If you receive a price impact too high PancakeSwap message during a transaction, it means you’re probably about to lose money if you continue with that transaction.
In a pool with low liquidity, when someone is trying to make a transaction worth a significant percentage of the liquidity, the “price impact” system will raise the transaction price to protect the liquidity in the pool.
Why does price impact too high occur on PancakeSwap?
The price impact too high PancakeSwap message usually occurs when someone tries to trade in the latest version of the exchange.
It’s a byproduct of the PancakeSwap migration from V1 to V2, an upgraded version of the PancakeSwap exchange. Simply put, the update created a liquidity problem because not all pools have migrated from V1 to V2.
Therefore, if you’re trading or swapping on PancakeSwap, it’s helpful to know what version of the exchange you’re using to determine if the price impact too high PancakeSwap message is due to this or because you’re trading within a low liquidity pool.
You can also get the price impact too high message on Uniswap. We have another article If you want to learn how to fix it there.
How do you fix the price impact too high PancakeSwap error?
Thankfully, you can apply different solutions to fix the price impact too high PancakeSwap message. You’ll learn about the three of them down below.
1. Switch to the V1 version of PancakeSwap
Usually, the price impact too high PancakeSwap message appears because the liquidity pool of the pair you’re trading hasn’t migrated from the V1 version of PancakeSwap to the updated V2 version.
To fix this issue, just follow these simple steps:
- Navigate to the PancakeSwap website and click on ‘Trade’.
- Click on ‘Connect Wallet’ and choose your wallet to connect.
- Scroll down to the bottom of the page and click on the ‘V1 (old)’ option.
- A pop-up window with a message will tell you that the V1 version is no longer supported. Click in the box to accept the message.
- Click on ‘Continue to V1 Anyway’.
- You can now trade in the V1 version.
Switching from V1 (old) to V2 should solve the price impact too high PancakeSwap issue for pairs with pools in the migration process.
2. Break down the transaction into smaller portions
The main reason for the price impact too high PancakeSwap message is that a significant transaction occurs in a pair with a low-liquidity pool. So if you break your transaction into smaller transactions, they will affect a smaller percentage of the liquidity pool.
You’ll have to be more careful because you’ll be making more transactions, but by doing so, you can swap or trade on PancakeSwap without losing money due to low liquidity pools.
Breaking your transactions into smaller portions is the safest way to ensure you don’t lose any money trading low-liquidity pairs.
3. Increase the slippage tolerance
The other solution to fix the price impact too high PancakeSwap error is increasing the slippage tolerance in the PancakeSwap exchange. Slippage is the difference between the expected price of the underlying asset and the actual price at which the trade occurs.
You can increase the slippage tolerance on PancakeSwap by following these steps:
- Go to the PancakeSwap website and connect your wallet.
- Click on the ‘Settings’ logo on the trading tool and scroll down to the ‘Slippage Tolerance’ section.
- Select the tolerance percentage of your preference.
When you select a high slippage tolerance, you’re basically accepting a loss percentage in your trade due to external price changes. Be mindful of the slippage tolerance you’re using; it could cost you money if you don’t understand how it works.
You can check your internet speed to see if a faster connection can solve the issue. Sometimes, transactions won’t take place because your internet connection is too slow—it may not be the best idea to swap a high value of cryptocurrencies at a café.
If your internet connection is too slow, we recommend you find a faster network to make your transactions. In general, it’s not safe nor recommended to trade cryptocurrencies with a slow internet connection.
Also, try changing your web browser. Sometimes dApps and crypto platforms are built for a specific web browser, so make sure you use the right one for the platform.
When you’re using decentralized exchanges like PancakeSwap to make transactions, you might run into the price impact too high PancakeSwap error because the price impact your trade has on the liquidity pool is either too high or too disruptive.
You can fix the price impact too high PancakeSwap error by changing the PancakeSwap exchange version to an older one, breaking your transaction into smaller portions, or increasing the slippage tolerance of your trades.
Breaking your transactions into smaller portions is the safest way to swap trading PancakeSwap pairs with low-liquidity pools. This step ensures you’re not losing money in trades with low-liquidity pairs.