A cryptocurrency exchange aggregator (exchange aggregator) is a service that brings information from many trading venues into a single interface. Instead of opening accounts and comparing quotes on each exchange separately, the user sees prices, volumes and available liquidity from several sources at once and can choose the optimal conditions for a trade.
The main value of an aggregator is saving time and finding the best price. Since quotes for the same asset on different exchanges can vary, an aggregator helps find the most favorable offer, and in a number of cases it can split a large order across several venues in order to reduce slippage and market impact.
What tasks an aggregator solves
- Comparing prices and liquidity across different exchanges in one window.
- Finding a favorable order execution route.
- Reducing slippage on large trades.
A distinction is made between aggregators for centralized exchanges and decentralized trading aggregators (DEX aggregators), which route trades through smart contracts. When choosing a service, it is important to consider its reliability, fees and the range of supported venues.
