What Is Aggregation?
Aggregation in crypto markets refers to combining liquidity from multiple sources — exchanges, DEXs, or OTC desks — to achieve the best possible execution for a trade. DEX aggregators like 1inch and Jupiter scan across dozens of decentralized exchanges to find the optimal route for a swap, often splitting a single order across multiple pools for better pricing.
How Aggregation Works
Aggregation works by comparing prices across all available venues simultaneously and routing orders to the combination of sources that minimizes cost (including slippage, fees, and gas). A $100,000 swap might be split: 60% through Uniswap V3, 30% through Curve, and 10% through SushiSwap, because no single pool has enough depth for the full amount at the best price.
Why It Matters for Traders
Using aggregators rather than going directly to a single DEX almost always results in better execution, especially for larger trades. The difference can be significant: 1-5% savings on large altcoin swaps. For traders executing meaningful size on DEXs, aggregators are essential tools that turn fragmented liquidity into a competitive advantage.
