Dex Aggregator: The Search Engine For Crypto Trading
In this blog, we will get to know about the Dex aggregators, their pros & cons, and some best aggregators available in the market.
What are Dex Aggregators?
Cryptocurrency exchanges are classified into two types, one centralized and the other decentralized. However, the DEX aggregators are the search explorer for getting the best liquidity and price across the decentralized cryptocurrency exchanges.
Decentralized exchanges are the ones that facilitate peer-to-peer transactions without any intermediaries. They don’t support the trading of fiat currencies for cryptocurrencies. Moreover, investors and traders prefer decentralized exchanges over centralized exchanges because they offer more security.
However, with the rising interest in crypto, more and more DEXs flood the market, and investors often struggle to find the best possible liquidity and pricing. This is where Dex aggregators come into role, investors, as well as traders, can select the token pairs they want to swap and the aggregator in return will show the best price and liquidity available across different Dexes such as Uniswap, Pancakeswap, etc for selected token pairs.
Pros
1 Decentralized and Secure
2 Enhanced usability
3 Better UI/Ux
4 Offers best prices for trading token pairs.
Cons
1 Lack of customer service
2 Complicated process
3 Limited features
Best Dex Aggregators Available In the Market
Given below are some of the best Dex aggregators available and widely used by the public.
1. 1Inch:
1Inch is the leading Dex aggregator and offers the best rates by discovering the most efficient swapping routes across all leading DEXes.The platform also operates on the Ethereum and Binance Smart Chain, allowing diversification in your trading options. Also, there are 15 Dexes listed on 1inch and the trade volume is $474,250,000
2. Slingshot (formerly DEX.AG):
Slingshot is an easy-to-use aggregator with a couple of features such as Xblaster, it splits larger trades up into smaller pieces and achieves the best possible price for trade by spreading them across multiple DEXes at once. However, there are 18 Dexes listed on Slingshot and the trade volume is $7,000,000
3. Totleswap:
Totle is a Dex aggregator which is connected to top decentralized exchanges and synthetic asset providers. It has 15 Dexes listed with a volume of $4,370,000
4. Paraswap:
ParaSwap is considered to be one of the fastest DEX aggregators. It has swap and payment options with a focus on better market rates and cheaper gas fees. It has 12 Dexes listed with a volume of $78,450,000.
5. Matcha:
Matcha is a Dex aggregator powered by Ox labs. It splits trades over several networks to find the best price for the trade. Moreover, it has 10 Dexes listed with a volume of $75,210
Conclusion
To conclude, Dex aggregators are expanding the use of cryptocurrency exchanges. Since 2019, they are gaining popularity because of the interest of users towards Decentralized Finance (Defi). Similarly, investors are also adopting aggregators because it offers them to make informed decisions about their trades and coin swaps.
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