Are you getting a “Price Impact Too High” error on PancakeSwap or UniSwap?
This error occurred after migrating PancakeSwap V1 to V2.
When you are looking to exchange BNB Smart Chain for another token, you may get the “Price Impact Too High” error.
This is frustrating because you won’t be able to liquidate your position.
In this guide, you will learn what “Impact on Too High Price” means on PancakeSwap and how to fix it.
Table of Contents:
What “Impact on Price Too High” Means on PancakeSwap
“Impact on price too high” means that you will lose a large part of your funds when you trade your tokens.
The impact on the price is the effect that your trade has on the market price of the underlying tokens.
It is linked to the amount of liquidity in the pool.
The impact on price will be particularly high for illiquid token pairs.
For example, if you’re trading $190 of Ethereum for $80 of Dipper Network, the impact on the price will be around 60%.
This is because there is a low number of Dipper Network sellers at the market price to fulfill your order.
In that case, you can wait for more liquidity to enter the market or decrease the amount traded.
On PancakeSwap, the error “Impact on price too high” occurs due to migration from V1 to V2.
PancakeSwap V2 is known to cause the “Price Impact Too High” error because there is not enough liquidity there.
Since the V2 pool is new, no liquidity has been added yet.
In other words, liquidity pools are still migrating/updating.
So, you have to wait for the developers of the token to migrate/update it.
How to Fix “Impact on Price Too High” on PancakeSwap
To fix “Price Impact Too High” on PancakeSwap, you need to switch from V2 to V1 (old).
After passing PancakeSwap to V1, you will be able to trade your tokens without errors.
PancakeSwap migrated to V2 on April 25, 2021.
However, the liquidity pool of many tokens is still locked in V1.
So, you will not be able to trade these tokens on PancakeSwap V2.
To confirm this, you can visit the token’s Twitter page and check out their tweets.
For example, ElonGate recently unlocked its liquidity pool to support PancakeSwap V2.
They also withdrew a portion of their reserves to support V2 with 30% of their liquidity.
However, most of their liquidity is still stuck at V1.
Here’s how you can fix “Impact on Price Too High” on PancakeSwap:
1. Switch to V1 (old)
First, open PancakeSwap and connect to your wallet if you haven’t already.
You can use MetaMask, Trust Wallet, etc.
In the bottom navigation bar of PancakeSwap, you will see a couple of versions.
Versions are “V2” and “V1 (old)” as of May 2021.
By default, the version you are in will be “V2”.
If you are on “V2”, the liquidity pool of the token you are attempting to trade is most likely being migrated/upgraded from V1 to V2.
Otherwise, the developer of the token has yet to do so.
So, you may not be able to trade the token on PancakeSwap V2 since there is not enough liquidity.
To fix this, tap “V1 (old)” to switch PancakeSwap to version 1.
2. Tap “Continue to V1 anyway”
After tapping “V1 (old), a pop-up message will open.
In the popup message, you will see a message saying that PancakeSwap V1 is no longer supported.
He also recommends going to the V2 Exchange instead for better prices on most pairs.
At the bottom of the popup message, you’ll see a checkbox along with a disclaimer.
Tap the checkbox to confirm the disclaimer.
The liquidity of most tokens is still stuck in the V1 liquidity pool, so you need to switch to V1 for the time being.
Tap “Continue to V1 anyway” to switch to PancakeSwap V1.
After upgrading to version 1 of PancakeSwap, you will be able to trade your tokens without the “Price Impact Too High” error!
Conclusion
Migrating PancakeSwap V1 to V2 caused a lot of errors.
Many tokens have yet to upgrade/migrate their liquidity pools.
So, you won’t be able to trade certain tokens on the new version of PancakeSwap.
However, if you use the old version (V1) of PancakeSwap and get the “Price Impact Too High” error, try switching to V2 instead.
