A DeFi aggregator brings together trades across various DeFi platforms into one space.
What Is a DeFi Aggregator?
A DeFi aggregator brings together trades across various decentralized finance platforms (DeFi) into one location, saving users time and increasing efficiency for cryptocurrency trades. As the name suggests, DeFi is spread out across different blockchains such as Ethereum, Polygon, and Binance Smart Chain. Within each blockchain is an ecosystem of financial protocols.
While having a wide selection of different protocols is beneficial to diversify investments and getting the best yield rates from crypto lending, efficiency and convenience are hindered since the financial information is spread vastly across multiple protocols. That’s where DeFi aggregators thrive.
DeFi aggregators siphon the very best prices from DEXs, lending services, and liquidity pools into one place so that users can optimize their trades. Without an aggregator, users need to go to each platform on an individual basis to compare prices that will generate the best deal for them. Then, the user must manually execute each transaction using smart contracts. While this strategy may be fine for casual crypto trading, it severely limits those looking to implement advanced trading strategies.
Not only do DEX aggregators pull the best prices, but some DeFi aggregators even offer a unique, user-friendly way to analyze and combine other users’ trading strategies via a convenient drag and drop mechanism. This way, users can create an entirely new strategy of their own using the inspiration of other successful traders. The drag and drop mechanism also helps users visualize complex DeFi protocols via blocks that can be built on top of one another.
The DEX Aggregators put UX/UI at the forefront, offering a far superior experience to the traditional way of manually interacting with liquidity layers. As a result, this helps users who are not as crypto-savvy as trading experts navigate the world of DeFi with ease.
With the advent of DEX aggregators, new entries to the industry can benefit from DeFi without having to understand the technical complexities of trading, coding, blockchain, etc. An aggregator gives power to these new users and helps them make better trading decisions.
In a decentralized economy such as this, it’s still important to centralize some aspects of DeFi for the sake of efficiency. DeFi aggregators bring together the best of both worlds of centralized organization strategies and decentralized finance protocols to create an important tool in this new, exciting industry.
The forbitspace is an aggregator protocol that allows traders to benefit from a large variety of financial tools in a single interface.
forbitspace use an algorithm smart order routing that split a single transaction into multiple orders across various DEX’s, also route orders through allows crypto traders to tap deep liquidity and receive better pricing low cost & efficient the most liquidity.