// GLOSSARY -- DEFI

What is DEX Aggregator?

1 min read Updated

A DEX aggregator routes trades across multiple decentralized exchanges to find the optimal execution price — splitting orders across pools and protocols to minimize slippage and maximize returns.

WHY IT MATTERS

No single DEX has the best price for every trade. Aggregators solve this by searching across all available liquidity sources — Uniswap, Curve, Balancer, SushiSwap, and more — finding the optimal route.

For large trades, aggregators often split orders across multiple pools: 60% through Uniswap V3, 30% through Curve, 10% through a smaller DEX. This reduces price impact compared to hitting a single pool.

Major aggregators include 1inch, Paraswap, and 0x. They've become the default trading interface for experienced DeFi users who want the best execution without manually checking each DEX.

FREQUENTLY ASKED QUESTIONS

Should I always use an aggregator?
For significant trade sizes, usually yes — the price improvement exceeds the slightly higher gas cost. For tiny trades, the gas overhead may negate the savings.
How do aggregators make money?
Various models: positive slippage capture (keeping the difference when execution beats the quote), frontend fees, or token swaps at favorable rates. 1inch has a positive slippage model.
Are aggregators safe?
Major aggregators (1inch, Paraswap) are well-audited. The main risk is token approval — you grant the aggregator contract permission to spend your tokens. Use reputable frontends.

FURTHER READING

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