> An illiquid asset cannot be liquidated without slippage - that's why there's a liquidity premium.
We agree here.
> Those are the same thing.
We disagree here.
"In economics, a liquidity premium is the explanation for a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity." [0]
"With regard to futures contracts as well as other financial instruments, slippage is the difference between where the computer signaled the entry and exit for a trade and where actual clients, with actual money, entered and exited the market using the computer’s signals."
The concepts are related, but not identical.