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From Terraria Wiki
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Pink Gel Dye is a dye that is crafted from Gel Dye. The Gel Dye can be acquired from the Dye Trader, and can be combined with Pink Gel, a crafting material dropped by Pinky, at a Dye Vat. Just like the Gel Dye, the Pink Gel Dye will produce an effect similar to the Slime debuff caused by the Slime Gun, though it will be displayed in a color that's more pink than blue.