How DeFi aggregators optimize DEX trading

cointelegraph.com:

The rapid downfall of FTX has hastened the shift from centralized exchanges (CEXs) to decentralized exchanges (DEXs), but selecting the right DEX is not an easy task. Besides looking for convenience and an intuitive interface, crypto traders face several challenges with DEXs that can greatly affect their trading activity.

The problem is that many traders are unaware of some of these challenges because some DEXs don’t provide enough information to simplify the trading process. This leaves many crypto traders vulnerable to several DEX risks, such as:

These challenges are amplified by the fact that the DEX market is fragmented, and there are multiple options to choose from, which leaves crypto traders confused. A diverse range of options is good for the market, but when it comes to an emerging sector, it is difficult to make an informed decision. Traders are often forced to transact on multiple DEXs in the hunt for better rates, but they have to give permission to numerous smart contracts.

DEX aggregators come to the rescue by addressing most problems faced by independent DEXs, which can make the CEX-to-DEX transition smoother.

DEX aggregators are DeFi protocols that give crypto traders access to multiple trading pools through a single dashboard. They use complex algorithms that consider multiple factors to pick the best DEX for each specific token swap.

The lack of sufficient liquidity is one of the most ardent problems DEXs face, and aggregators address this issue by giving traders access to multiple DEXs at once. By securing more liquidity, DEX aggregators offer better price discovery and reduce the risk of price slippage. They can also split orders across multiple DEXs to further diminish slippage. 

Thanks to DEX aggregators,