DEX Aggregators: What They Are and How They Work
If you are interested in trading or investing in cryptocurrencies, you may have heard of decentralized exchanges (DEXs). These are platforms that allow you to swap tokens without the need for a central authority or intermediary. You can enjoy more security, privacy and control over your funds on DEXs, as well as access a wide range of innovative and diverse projects in the decentralized finance (DeFi) space. However, DEXs are not without their challenges. One of the main issues is liquidity, which refers to the availability and depth of trading pairs on a platform. Liquidity affects the speed, price and efficiency of your trades. If a DEX has low liquidity, you may face high slippage, which is the difference between the expected price and the actual price of a trade. You may also encounter high fees, slow transactions and limited options. This is where dex aggregators come in. Dex aggregators are financial protocols that give you an easy way to access various trading pools fro...