A green chart is not a quote for your entire position. Here is a simplified x*y=k example.

Pool: 10,000 tokens and 1,000 USDC. Ignore fees, other trades and routing.

The marginal price is 0.10 USDC per token, so 1,000 tokens are marked at 100 USDC. Now sell those 1,000 tokens into the pool.

k = 10,000 * 1,000 = 10,000,000

New token reserve = 11,000

New USDC reserve = 10,000,000 / 11,000 = 909.09

Output = 1,000 - 909.09 = 90.91 USDC

Average execution is about 0.09091 USDC per token, 9.09% below the starting marginal price. Your own order moves along the curve as it executes.

Price impact comes from your trade. Slippage is the difference between the quote and actual execution. Raising slippage tolerance does not remove price impact.

This toy model is not the exact mechanism of every AMM or bonding curve.…