There are thousands of tokens across hundreds of DEXes each with its own separate pools and tiny liquidity.
This problem of fragmented liquidity gives rise to different prices and high slippage, especially when you’re making large volume trades.
Furthermore, it’s hard to manually compare the liquidity and rates of multiple DEXs to determine which one will give you the best price for a trade.
And this is where decentralised exchange (DEX) aggregators come in.
What are DEX aggregators?
DEX aggregators are liquidity search engines that aggregate liquidity from multiple DEXes and facilitate split trades in order to give you the best prices.
They help you trade more efficiently by offering you access to the deepest liquidity, lowest slippage and best exchange rates across multiple DEXs on different chains.
Using DEX aggregators, you’ll receive a better execution price than when you trade directly on a single DEX.
How does DEX aggregators work?
DEX aggregators instantly analyse thousands of quotes and fees across multiple DEXs to provide you with the best rates.
Below is a simplified illustration of how DEX aggregators work:
- Select the tokens you want to swap.
- The exchange DEX aggregator searches all the DEXs and finds the ones with liquidity for your trade, and compares liquidity depth, slippage, prices, and fees.
- Then do some extremely complicated calculations in a matter of seconds to determine how best to split and route your trade for the best price.
- And shows you the final rate and the liquidity sources it has selected to use for your trade.
- You approve the transaction and let the protocol do its magic and settle your trade accordingly.
DEX aggregators save you time and money by optimising your trades for maximum efficiency.
In this post, I will be sharing with you the list of the best DEX aggregators that you can use to trade more efficiently.
Top 9 best DEX aggregators
These are some of the best DEX aggregators to optimise your trades for better rates. The list is in no particular order.