Definition
Bridge slippage is a form of value deviation that occurs when assets are moved across networks using a bridge and the final amount received differs from the amount initially quoted. It reflects the risk that the effective execution rate on the bridge changes between the time a transaction is initiated and when it is settled. This difference arises from how the bridge prices assets and how its internal and external markets adjust during the transfer process.
As a risk metric, bridge slippage captures the impact of dynamic pricing, available bridge liquidity, and market conditions on cross-network transfers. It is distinct from any explicit bridge fee, which is a known charge, because slippage represents an uncertain, market-driven shortfall or gain relative to the expected outcome. In practice, higher volatility or constrained bridge liquidity tends to increase the potential magnitude of bridge slippage.
Context and Usage
Bridge slippage is commonly referenced when evaluating the reliability and predictability of a bridge for moving assets between networks. It is closely related to price impact, since large transfers relative to available bridge liquidity can move the effective rate at which assets are exchanged. In this sense, bridge slippage summarizes how sensitive a bridge’s pricing is to trade size and current market depth.
In decentralized finance, bridge slippage is treated as a specific cross-network expression of general slippage risk. It is used to characterize how much the realized value of a bridged asset can diverge from its notional value after accounting for price impact but before or alongside any bridge fee. As a result, it serves as a key indicator of the economic efficiency and stability of a given bridge design under varying liquidity and market conditions.