DEX aggregators are a relatively new type of blockchain-based service that allow cryptocurrency traders to benefit from a large variety of financial tools in a single interface, often providi
Decentralized exchanges offer varying pricing, and it is not always easy to find the best deal for the trading pair you are looking into. Not only that, crypto investors are starting to turn more and more to DEXs, as they offer increased security and a better fit with the innate characteristics of a cryptocurrency. However, with the rising interest in crypto, more and more DEXs flood the market, and investors often struggle to find the best possible liquidity and pricing. This is where DEX aggregators come into play. While investors can try and sift through different exchanges with limited success, DEX aggregators rely on complicated algorithms to take into account numerous factors in selecting the best possible provider for a given token swap.
The easiest way to visualize what a DEX aggregator does is to compare it to a search engine. Imagine services like Google Flights, where you get aggregated information from numerous airlines, and you can pick and choose which deal serves you the best. DEX aggregators function in a very similar way. They accumulate data from a wide array of decentralized exchanges and facilitate split trades in order to offer the best possible prices. Not only that, DEX aggregators complete numerous calculations and give users the option to perform split trades in order to achieve the best possible price of a swap. In essence, crypto traders cannot accomplish this result because DEX aggregators perform extremely complicated calculations in a matter of seconds.
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