Price Impact Plain-English Explainer

WHAT IT DOES

This tool estimates and explains the price impact of a proposed swap transaction in plain English. It reads DEX liquidity pool data including current pool reserves and depth, the swap amount and direction, and calculates the price impact using pool math. It then translates slippage, pool depth, and price movement into a clear, actionable explanation — describing what percentage the price will move, how much the user will lose to slippage compared to the current market price, whether the pool has sufficient depth, and whether the impact is normal or concerning. This helps you understand the true cost of a trade before you sign, so you can avoid unexpectedly large slippage or trades that move the market against you.

HOW TO USE

Connect your wallet, select the network, and paste the token address you want to trade. Enter the swap amount and choose the direction (buy or sell). The tool will fetch the current pool state, calculate the estimated price impact, and display the results alongside an AI-generated plain-English explanation. No transaction is required — this is a read-only operation. The AI explanation is generated from the exact data the tool reads, ensuring the guidance is grounded in what the pool actually shows.

TECHNICAL MECHANISM

The tool performs view calls to fetch DEX pool reserves and calculates price impact using the constant product formula (x * y = k). It estimates slippage based on trade size relative to pool depth, and determines the percentage price movement that would result from the swap. The tool tracks pool utilization to flag when a trade is too large for the available liquidity. All calculations are performed against the current block state, and the AI prompt is constructed entirely from the actual read results — never from assumptions — ensuring the explanation is grounded solely in what the pool actually shows at the moment of estimation. All reads are performed through the connected wallet's provider.

WHAT IT CANNOT SEE

This tool cannot definitively determine if price impact is fair or manipulated — it only reads on-chain liquidity data and calculates impact. It cannot detect off-chain order book depth. It cannot predict price movement after the swap. It cannot account for arbitrage that may occur after the transaction. It cannot verify liquidity provider behavior. Calculations depend on DEX pool state which may change before transaction execution. It cannot detect fee-on-transfer tokens that affect actual received amount. Price impact estimates may differ from actual execution due to mempool conditions. The AI explanation is generated from the data the tool reads and should be treated as informational, not as a guarantee of execution outcome.

PLEASE NOTE

EVM chains only. Explanations are AI-generated from data the app reads on-chain — always review what you are actually signing in your wallet before approving it. This tool is read-only and never initiates transactions.