0 like 0 dislike
0 like 0 dislike
Somewhat new to the space one thing I haven't been able to wrap my head around, what's the use case for trading on a pure DEX like Uniswap vs. going to an aggregator like 1inch? Won't I always get at least as good a price on 1Inch since Uniswap is one of its sources? Are there risks with Aggregators i'm not aware of? Thanks!

9 Answers

0 like 0 dislike
0 like 0 dislike
Yep, a (good) aggregator is always superior to the DEXs they operate on top of. You have to trust the aggregator's smart contracts, but don't really have to worry about all the underlying DEXs - the swap will either succeed and you get your tokens, or it'll fail and you get a refund.
0 like 0 dislike
0 like 0 dislike
Cowswap and paraswap are my gotos
0 like 0 dislike
0 like 0 dislike
I've always had success with matcha.xyz
0 like 0 dislike
0 like 0 dislike
Most people that use DEXes like Uniswap directly instead of aggregators that include it and many other DEXes do so because they don't know that aggregators exist or they don't trust them.

>Are there risks with Aggregators i'm not aware of? Thanks!

I can't speak for all DEXes and aggregators but it's true that in general DEX smart contracts are immutable and very simple and easy to review, which makes trusting them much easier. Aggregators almost always offer better prices but that comes with more complex and often upgradeable smart contracts that are harder to trust.

In practice, we haven't seen any big hacks or security issues with aggregators, so trading on DEXes instead of on aggregators is mostly a matter of preference.
0 like 0 dislike
0 like 0 dislike
It all comes down to having enough  liqudity to support the swaps.

All DEXes are Automated Money makers and they have a limited liquidity. Becase of that, a phenomenon called price slippage occurs when trading on the DEXes directly. Price slippage means getting less funds than the initial swap quote.

Aggregators pulls liquidity from multiple DEXes, which means their slippage is Lower than a single DEX itself, resulting into better swap rates at average
0 like 0 dislike
0 like 0 dislike
If you take DEX, I personally only use CAKE and KDX
  

  
I do not use others because there are very high commissions
  

  
I think everyone has to choose, whether to use aggregator or DEX or CEX, but I personally choose DEX
0 like 0 dislike
0 like 0 dislike
Whether DEX or CEX or aggregators there are risks in platforms, it’s how the individual platforms mitigate the risks that matter. I’ve used DEX mostly then aggregator occasionally. I’m sure I’m going to stick to the former long term especially with one that tackles fragmented liquidity by pooling liquidity from both CEX and DEX as well as combining artificial intelligence systems in its solution.
0 like 0 dislike
0 like 0 dislike
Yes, you are right. You get best pricing via a dex aggregator since it combines liquidity across all DEX venues. There are others like Orion, Rango, Symbiosis & FLUID as well

Risk is smart contracts risk, but I think 1INCH is fine.
0 like 0 dislike
0 like 0 dislike
[removed]
0 like 0 dislike
0 like 0 dislike
[removed]

No related questions found

Welcome to Bitteg, where you can ask questions and receive answers.