DeFi | What does a DEX aggregator do?
A DEX aggregator checks quotes from several decentralized exchanges and liquidity pools at the same time to find a better route for a swap.
Since any single pool has limited depth, splitting a large swap across several pools reduces the price impact on each pool and usually results in a better overall execution price.
On Ethereum, swapping through an aggregator costs $ETH in Gas; $1INCH is 1inch’s governance token.
Every potential return comes with a corresponding risk. First, consider how much you could lose in the worst case.
#ETH
A DEX aggregator checks quotes from several decentralized exchanges and liquidity pools at the same time to find a better route for a swap.
Since any single pool has limited depth, splitting a large swap across several pools reduces the price impact on each pool and usually results in a better overall execution price.
On Ethereum, swapping through an aggregator costs $ETH in Gas; $1INCH is 1inch’s governance token.
Every potential return comes with a corresponding risk. First, consider how much you could lose in the worst case.
#ETH