DEX aggregator
DEXs in the market are so many today, each one has its separate liquidity pools. if a traders wants to make sufficiently large token swaps, he/she may incur
high slippage and high price premium.
DEXs in the market are so many today, each one has its separate liquidity pools. if a traders wants to make sufficiently large token swaps, he/she may incur
high slippage and high price premium.
The amount of slippage incurred by
traders depends on the amount of liquidity available in each DEX. Traders may split the trades into smaller parts to minimize the slippage, and route them onto the separate DEXs
Splitting and routing large trades across several DEXs in a
traders depends on the amount of liquidity available in each DEX. Traders may split the trades into smaller parts to minimize the slippage, and route them onto the separate DEXs
Splitting and routing large trades across several DEXs in a
manual way is a cumbersome process for obvious reasons so traders can use DEFI aggregators to do the dirty work for them, they can save gas and simplify things by splitting their large trades into smaller parts and route them to the relevant DEXs for the best execution price with
aid of DEFI aggregators.
examples are 1inch, bancor, paraswap etc
some pros of DEX aggregator are;
- it ensures traders can get the best price when making large trades by minimizing price slippage,
examples are 1inch, bancor, paraswap etc
some pros of DEX aggregator are;
- it ensures traders can get the best price when making large trades by minimizing price slippage,
- there are many DEX protocols and new users can be overwhelmed by not knowing which one to stick with, a DEX aggregator can help the user benefit from as many as possible
However, a DEFI Aggregator does come with the major con of gas fees, Usually, gas fees are higher on
However, a DEFI Aggregator does come with the major con of gas fees, Usually, gas fees are higher on
aggregators compared to using the individual protocol.
At the end of the day, it is all about trade offs and what the user wants
At the end of the day, it is all about trade offs and what the user wants
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