CRYPTO BASICS SERIES: DEX AGGREGATOR BASICS

Summary from the TLDR Crypto newsletter

This article likens DEX aggregators to hotel search engines - tools to find the best deals across multiple DEXs. They monitor numerous liquidity sources using algorithms to determine the most beneficial rates and least slippage, saving users what might otherwise be lost in transactions due to high slippage or suboptimal exchange rates. Some aggregators may even split trades across several exchanges to maximize conditions. Prominent examples of DEX aggregators include 1inch and Paraswap. In the future, DEX aggregators will likely become an integral part of wallets, enhancing their functionality as we have already seen with larger wallets like MetaMask.