A DEX aggregator searches many decentralized exchanges and liquidity pools for the best route for a trade, and can split the trade across several pools so that each one moves less. The result is usually a better rate than any single exchange, especially for larger trades or less liquid tokens. Cross-chain aggregators go further and compare bridges too, so you can swap and change networks in one flow.
Key Takeaways
- Best route: compares prices across many pools.
- Splitting: reduces price impact on larger trades.
- Cross-chain: adds bridges to the comparison.
- Fees: pool fees, gas and any aggregator fee appear in the quote.
Aggregator vs Single DEX
| Single DEX | DEX aggregator | |
|---|---|---|
| Liquidity | One exchange’s pools | Many exchanges’ pools |
| Price on large trades | More price impact | Lower, via splitting |
| Networks | Usually one | One (DEX aggregators) or many (cross-chain) |
| Extra fee | No | Sometimes, shown upfront |
Price impact and slippage are explained in what is slippage in crypto.
How Routing Works
- Quote: the aggregator asks many sources for prices.
- Optimize: it computes the route with the most output after fees and gas.
- Execute: one transaction calls the pools in the chosen order.
- Protect: a minimum-received value based on your slippage tolerance.
How to Choose an Aggregator
- Coverage: networks and tokens you use.
- Transparency: fees and routes shown before signing.
- Security: official domain, audits, track record.
- Cross-chain support if you move between networks.
Step Exchange uses LI.FI routing to compare DEXs and bridges across 60+ networks; see the widget below. More on bridges in how to bridge USDT. LI.FI’s own explanation of routing is at li.fi.
