Overview
A DEX aggregator is a service that splits swaps across multiple decentralized exchanges to find the best price and lowest slippage. It routes orders through the optimal combination of liquidity sources. Aggregators reduce the cost of trading on fragmented liquidity.
How It Works
When a user requests a swap, the aggregator evaluates prices and liquidity across many DEXs and splits the order across the best routes. This often yields better prices than trading on a single platform. Some aggregators also support limit orders and portfolio features.
Why It Matters
Aggregation solves the fragmentation of DEX liquidity, giving traders better execution without visiting each venue. It lowers barriers for retail users and improves market efficiency. It is a standard layer in the DeFi stack.
Related Concepts
DEX Aggregators build on AMMs and Liquidity Pools, and they relate to Slippage and Order Books. Leading examples include 1inch and ParaSwap.