DEX Aggregators

Overview

DEX aggregators are a demand-side solution that was created with the purpose of connecting siloed liquidity across various DEXs (both AMM and order book). This is achieved through splitting and rerouting trades across various DEXs to achieve optimal swap rates given the network conditions. By aggregating liquidity across DEXs, aggregators provide users with a convenient entry point to explore and compare rates in an objective manner.

An aggregator’s competitive edge comes from its ability to efficiently calculate the most efficient trade route taking into account swap rates, slippage, and gas fees. Critically, this trade route optimisation necessitates programmatically routing trades towards the most capitally efficient liquidity sources which encourages greater market stability through competition.