DEX aggregators allow you to access liquidity from a variety of trading protocols. Read on and learn what DEX aggregators are, how they work and what benefits they bring.
A DEX aggregator checks DEXs for the best price, liquidity, and trading path for token swaps. By bringing multiple liquidity pools and providers together, they can offer better prices, less slippage, and save users time.
The main goal is to provide you with the optimal prices, lower slippage and reduced transaction costs by routing trades through DEXs with the best fees and deepest liquidity.
DEX aggregators use technology such as Smart Order Routing (SOR), intent-based mechanisms and MEV (maximum extractable value) protection to provide a secure and efficient trading environment.
Here's how they work:
You enter a desired token pair into a DEX aggregator and it immediately queries all its integrated DEXs and liquidity pools for the pair.
With the help of SOR algorithms, it analyzes various factors, including the latest token prices from each DEX, available liquidity in different pools, trading fees on each platform, potential gas costs for different routes and slippage impact on the trade size.
The SOR finds the best way to fulfill your trade, be it direct routing (sending the trade to a single DEX with the best terms), splitting (across multiple DEXs to tap into different liquidity pockets and minimize slippage) or multi-hop routing (carrying it out through an intermediary token).
Once it’s discovered the best path and you have approved the smart contract interaction, the DEX aggregator will facilitate the transaction.
DEX aggregators make life easier for DeFi traders as they would otherwise be forced to check each DEX individually, assessing multiple factors including prices, fees, and liquidity. With so many options and factors, it is difficult to make the best decision in reasonable times.
For instance, one AMM may have really good prices but low liquidity, leading to high slippage. Another one may have plenty of liquidity but charge more, resulting in a less appealing exchange rate. A third one may be more balanced, but you wouldn’t know it without checking the competition.
By consolidating liquidity and using advanced algorithms, DEX aggregators strive to offer the best possible prices by sourcing rates from a wide pool of DEXs.
In addition, they aim to reduce the price impact of trades (particularly for larger orders), optimize gas fees and simplify the trading process across the DeFi ecosystem.
Magic Eden allows to easily swap tokens, including cross-chain swaps, through it’s Swap product and Slingshot trading app.
On Magic Eden, you can also trade tokens across multiple chains, including Ethereum, Solana, Polygon and others, having Magic Eden Swaps function as a cross-chain bridge.
Magic Eden is a self-custodial platform where users retain full control over their assets
Trading across different blockchains on Magic Eden is straightforward
The swap will take a few minutes to complete and then your tokens will appear in your connected wallet.
Magic Eden Swaps simplify how we move assets from one blockchain to another. They are super-fast, straightforward and cheap, with minimum slippage–all thanks to DEX aggregation.
Without Magic Eden, you’d have to scour countless third-party exchanges to find these advantages, and still, you wouldn’t be sure you’ve got the best deal.
Connect your wallet to Magic Eden to trade across chains with just a few clicks.
When it comes to choosing the best DEX aggregator, there’s no one-size-fits-all answer. Your choice of the best DEX aggregator depends on what chains and tokens you’re trading. Popular platforms include Magic Eden, 1Inch, CoW Swap, and Slingshot.
There are certain key features that make a DEX aggregator stand out from the competition. These include optimal trade routing for the best price, support for multiple blockchains, low fees and minimal slipp
A Solana DEX aggregator is a type of DEX aggregation platform that sources liquidity across Solana-based DEXs like Orca, Raydium and Jupiter. Magic Eden supports Solana swaps as part of its broader multi-chain functionality and DEX aggregation capabilities. With Solana DEX aggregators, users can easily buy meme coins, AI coins, and other top Solana tokens.
The majority of major DEX aggregators are secure and non-custodial, which means you retain control of your funds. Still, users should remain wary at all times of the possibility of phishing, malware and other cyber attacks to access their funds. Common advice is to only use trusted smart contracts and always confirm routes and fees before executing trades.
The information provided on this website is provided for general educational purposes only and is in no way financial or investment advice. Certain information may have also been provided to us or prepared by third parties; these materials are provided for convenience and are not an endorsement by Magic Eden. Magic Eden is not liable for any errors, changes or amendments to such information, including any actions taken in reliance on such information.
