How to Use a DEX Aggregator by Defi Dad
With the early beginnings of a bull run in crypto, one of the most important new tools to master is trading on decentralized exchanges (DEXs) on Ethereum. For those of us trading tokens powered by Ethereum (ERC20 tokens), it’s important we can trade on DEXs that offer the following:
- Security--reputable developer teams, with audited coded to avoid smart contract bugs
- The best trading rates in decentralized finance
- The least slippage with the deepest liquidity
Fortunately in 2020, there’s countless DeFi applications with deep liquidity to trade on like Uniswap, Balancer, Curve, SushiSwap, Mooniswap, Kyber Swap, and more!
However, when you search for a flight, do you search every airline website to find the best rate? Of course not! We use search engines to aggregate all the potential flights available to find the best rate. When we trade in DeFi, the same concept exists in what’s referred to as a DEX aggregator.
A DEX aggregator gets you the best price for your trade across multiple DEXs, even splitting up your trade across different liquidity sources to improve the price. It’s not just a matter of knowing where to trade in DeFi anymore. You’d be competing against continuously refined algorithms to optimize trade routes, rates, slippage, and against the backdrop of major liquidity fluctuations in real time.The most reputable DEX aggregators on Ethereum, in no particular order are:
Here’s a quick example on 1inch Exchange: Let’s say you have 1 WBTC and wish to trade it for the CRV token from Curve Finance. Below, 1inch has mapped out 3 trades split across multiple major DeFi
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