Price Impact Too High Error On PancakeSwap: Solved

by Narendra

Have you recently been having trouble on Pancakeswap with the “Price Impact Too High” error? Well, Pancakeswap’s developers must be looking for ways to fix this problem, but you don’t need to worry too much about it since it’s happening to everyone who switched from Version1 to Version2.

In this article, we’ll show you how to figure out why Pancakeswap is giving you the “Price Impact Too High” error.

What does it mean when PancakeSwap says “Price Impact Too High”?

Users of Pancakeswap who have seen this error should first learn what the term “price impact” means. Price impact actually refers to how the market price of the underlying tokens could affect how the user trades and does business.

To put it more simply, the Price Impact Too High error happens when the user is likely to lose a lot of money if they keep going with the transaction they are in the middle of.

For example, if a Pancakeswap user swapped, say, $190 worth of Ethereum for $80 worth of Dipper Network, this particular transaction would have a price impact of about 60%.

This is because there aren’t many Dipper Network sellers, causing prices to be too high. If both transaction tokens had a lot of buyers and sellers, the Price Impact Too High error would not have happened.

This also tells us that the price impact is directly linked to the liquidity of the pool. If the token pairs are not very liquid, the price impact will be higher in the long run, and vice versa.

Why does PancakeSwap say that the price impact is too high?

As its name shows, the Price Impact Too High error can happen in two situations:

When there are very few sellers of the tokens being exchanged compared to the number of sellers expected after the exchange.
When the tokens being traded don’t have a lot of people interested in them,
Since many PancakeSwap users have been complaining about the price impact error, experts think that the change from Version1 to Version2 has made it more common.

This is because Version2’s liquidity pool is much smaller than Version1’s. One of the most common reasons for this is that the new version is still being updated or moved.

How to solve Price Impact Too High

Switch the version of PancakeSwap to Older Version

As we’ve already talked about, the change from Version1 to Version2 could be an ongoing process, which is why the error happens. The user must first change the version of the Pancakeswap exchange.

The user must look at the bottom of the platform to find a navigation bar. The user should choose V1 in the navigation bar as the version they want to use for the swap.

When the user does this, a message will pop up saying that PancakeSwap V1 is no longer supported. When the user sees that message, they must make sure they understand the disclaimer and then click “continue with V1 anyway” to update their version.

Keep the transactions separate

The Price Impact error is caused by a transaction that has a big effect. So, the user can buy crypto with smaller amounts, i.e., break up or compartmentalize their transactions so they go more smoothly.

If the user needs to buy or sell a large amount, they can do so in several smaller transactions instead of a single large one.

Raise the price difference allowed

When completing the transaction, the user may need to increase the slippage tolerance if the market’s prices have been changing more than usual and registering the transaction is taking longer than usual.

They need to keep in mind that a big difference in how much price slippage is okay comes with a warning to be careful.

They can do this by clicking on the gear icon and then going to the price slippage tolerance tab after scrolling down. Here, the user must choose a higher price slippage tolerance and do increments until the error no longer appears.

There are other ways to fix the “Price Impact Too High” error

In the meantime, Pancakeswap users can try shifting to a different device or a different browser application if the steps outlined above do not work to get rid of the Price Impact error. Developers are still working on migrating and upgrading versions of the software. There are times when the only solution to all the hassle is to use an internet connection with a higher speed.