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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

Related Terms

Related Articles

The Cycle of Aggregation Spins On, Now with Lending

Something big is happening in onchain lending. Beneath the surface, a quiet shift is reshaping how liquidity moves, how markets connect, and how users access yield. A wave of new models, integrations, and rising stars like Euler and Fluid rewrote the rules with unprecedented efficiency and flexibility. A new layer of coordination is emerging and could redefine lending itself: today, we pull back the curtain on lending aggregation. The Cycle of Aggregation I’ve seen a similar scenario unfold on the DEX side, with the rise of Uniswap, followed by competition from Sushi, aggregators, and the arrival of UNIv3. The core concepts required to analyze both transitions are similar, and I’ll explain them in this article.
The Cycle of Aggregation Spins On, Now with Lending