TRADING & AMMS
Liquidity Aggregation
Definition
Liquidity aggregation combines liquidity from multiple sources (DEXs, CEXs, pools) to provide better prices, reduce slippage, and improve trading execution for users.
Example
Example
Aggregators like 1inch and Paraswap combine liquidity from Uniswap, SushiSwap, Balancer, and other DEXs for optimal trades.
Risks to Consider
Risks
- Complex smart contracts
- Higher gas costs
- Aggregation failures
