Agregator AI
Last updated
Last updated
An aggregator AI swap is a service or platform that consolidates liquidity from multiple decentralized exchanges (DEXs) and other liquidity sources to provide users with the best possible trading prices and rates for their token swaps. The primary goal of an aggregator swap is to optimize the trading experience by finding the most efficient routes and lowest costs for executing trades.
Best Prices: Aggregators search across multiple DEXs to find the best price for a given token swap. This helps users get more value for their trades compared to using a single exchange.
Reduced Slippage: By splitting orders across multiple liquidity sources, aggregators can reduce slippage, which is the difference between the expected price of a trade and the actual executed price.
Increased Liquidity: Aggregators can access a larger pool of liquidity by combining the order books of multiple DEXs. This is particularly useful for large trades that might otherwise impact the market price on a single exchange.
Efficiency: Aggregators use smart routing algorithms to determine the most efficient way to execute a trade. This may involve splitting the trade across several exchanges to minimize costs and maximize returns.
User Convenience: Instead of manually checking multiple DEXs for the best rates, users can rely on an aggregator to automatically find and execute the best trades, saving time and effort.
Input Trade Parameters: The user specifies the details of the trade, such as the token pair and the amount to be swapped.
Query Multiple Sources: The aggregator queries multiple DEXs and liquidity sources to find available rates and liquidity.
Optimal Route Calculation: The aggregator's algorithm calculates the optimal route for the trade, which may involve splitting the trade across multiple exchanges to achieve the best price.
Execute Trade: The aggregator executes the trade according to the optimal route, often in a single transaction to minimize gas fees and ensure efficiency.
Return Output: The user receives the swapped tokens in their wallet at the best possible rate available across the connected liquidity sources.