Are you trying to swap tokens on a decentralized exchange (DEX) like Uniswap or PancakeSwap but getting an error message that says “Insufficient Liquidity for this Trade”? If so, you might be wondering what this error means and how to fix it.
When trading on decentralized exchanges, insufficient liquidity for trade might be a serious issue. Without sufficient liquidity, the prospects of finding willing counterparties to participate in the trade are minimal.
In this article, we will explain the meaning of insufficient liquidity, the common causes of this error, and the possible solutions to avoid or resolve it. Let’s get started!
Insufficient Liquidity for this trade meaning
“Insufficient Liquidity for this trade” is an error message that you may encounter when you try to swap tokens on a decentralized exchange like PancakeSwap or Uniswap. Insufficient Liquidity for this trade means that the liquidity pool does not have enough tokens to fulfill your order at the current price and slippage tolerance.
Liquidity means how much of a token or currency you can trade easily. For example, if a coin has low liquidity, it means not many people are buying or selling it. Decentralized platforms like PancakeSwap or Uniswap let you trade tokens with the help of liquidity pools. These are groups of tokens that are locked together in a pair.
For example, for the BTC/ETH pair, the pool has some Bitcoin and some Ethereum. When you trade tokens on these platforms, you swap tokens from one pool to another. The pool needs to have enough tokens for your trade to go through.
If the pool does not have enough tokens, you will see the error “Insufficient Liquidity for This Trade”. This means you cannot trade at the current price and amount. Another reason for this error could be that you are using a newer version of the platform and the token has not moved to that version yet. For example, if you try to trade a coin on PancakeSwap V2 that is only on V1, you will get an error because there is no liquidity for that coin on V2.
How do I fix insufficient liquidity on Uniswap?
If you are getting the error “Insufficient Liquidity for this Trade” on Uniswap, there are a few possible ways to fix it. The solutions that are most commonly used are shown below:
1. Change the current exchange version: To solve the problem of the “Insufficient Liquidity for this Trade” error message, you can use an older version of the market website. Uniswap website URL should be modified to include “?use=V2”. The V2 version will be accessible by adding this. If you want to go back to the V1 version, you can add “?use=V1” instead.
2. Change the slippage tolerance: For Uniswap, the first step is to go to the Uniswap website, using the default version. Next, connect your wallet to Uniswap and click on Settings at the top of your screen.
After that, under “Transaction Settings,” you will see the “Slippage Tolerance” part. There, add 10% to make your Slippage Tolerance higher. When you put 10% in the percentage box, you will get a message that says “Your transaction may be front-run”. Don’t worry about that message, and click anywhere on your screen to close the box. This should help you with the “Insufficient Liquidity for This Trade” problem. Try to trade your token again and see if it works or if the error is still there.
3. Check your internet connection: Another thing that can cause the “Insufficient Liquidity for This Trade” error is your internet connection. To see if your internet is the problem, try turning your router off and on again and see if the error goes away.
4. Look at the market: Maybe there is not enough money for the tokens you want to trade. Look at how the market is doing and think about trading a different pair that has more money.
5. Be patient and try again later: Since liquidity on Uniswap can change quickly, make sure to give yourself enough time and try again later when prompted “Insufficient Liquidity for This Trade.”
PancakeSwap has insufficient liquidity for this trade
Insufficient liquidity for this trade is a common error that many users face when they try to swap tokens on decentralized exchanges like PancakeSwap. It means that there is not enough money in the market for the tokens you want to trade. It’s possible to fix this problem in a number of different ways, including:
Using the old version of PancakeSwap
Step 1: Go to the PancakeSwap website or use the PancakeSwap app on your Trust wallet.
Step 2: You will see a screen that asks you to connect your wallet to PancakeSwap.
Step 3: PancakeSwap has a new version (V2) that is different from the old version (V1). You need to use the old version to fix the error. To do that, scroll down, and at the bottom of the exchange, you will find a switch with V1 and V2.
Step 4: Move the button to V1, and you will get a message that says V1 is not supported anymore and V2 is better. Ignore that message and check the box at the bottom that says, I understand that V1 is not supported and I may lose money. Then click on “Continue to V1 anyway.
Step 5: Connect your wallet again. So, if you are using a Trust wallet, you will have to choose and connect it.
Go for higher slippage tolerance
After connecting your wallet with Pancakeswap, you will see the “Slippage Tolerance” part under “Swaps & Liquidity.” Here, you will need to increase the slippage tolerance by adding 12%. Make sure not to change anything else. You will see a notice that reads “Your transaction may be front-run” when you enter 12% in the percentage field. Don’t be concerned about that notice, and click the X button in the upper-right corner of the box to dismiss it.
Apart from these, try following the 3rd, 4th, or 5th points mentioned above in the Uniswap section as alternative solutions to this error.
How to fix Insufficient Liquidity for this trade
There are a few possible ways to fix the “Insufficient Liquidity for this trade” error, depending on the situation. Here are some of them:
Increase Slippage Tolerance
Your willingness to accept a certain amount of a price difference for your trade is known as your slippage tolerance. If the price changes too much during your trade, it will not go through. You can increase your slippage tolerance by clicking on “Settings” at the top of the exchange page and entering a higher percentage (such as 12%) in the “Slippage Tolerance” section.
You might see a warning message that says your transaction may be front-run, but you can ignore it and close the box.
Change Exchange Version
Sometimes, the error happens because the token you want to trade is not supported by the new version of the exchange (V2). You can switch to the old version (V1) by clicking on “V1 (old)” at the bottom of the exchange page. You will see a pop-up message that says PancakeSwap V1 or Uniswap V1 is no longer supported, but you can ignore it and continue with your trade. This should work for older tokens that have not migrated to V2 yet.
Reduce Purchase Amount
When you attempt to purchase or sell too many tokens at once, errors might occur. This can deplete the liquidity pool and cause the price to change drastically. You can try reducing your purchase amount and see if that solves the problem. Alternatively, you can try buying or selling in smaller batches instead of one large order.
Avoid insufficient liquidity error
The best way to avoid insufficient liquidity error is to check the market conditions before you trade. This will help you decide if there is enough liquidity for your trade and if the price is favorable.
Use Centralized Exchanges (CEXs)
If none of the above methods work for you or if you prefer a more convenient and secure way to trade, you can use centralized exchanges instead of DEXs. CEXs are platforms that have their own order books and liquidity providers, so they do not rely on liquidity pools or smart contracts.
