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Liquidity aggregator Meaning

A platform (like 1inch, CowSwap, or Jupiter) that performs liquidity aggregation. A user interacts with the aggregator’s interface, and the aggregator’s algorithm finds the most efficient "route" for their trade across the entire decentralized landscape.

Aggregators often find routes that a human would never think of. For example, if you want to swap Token A for Token C, it might be cheaper to go A -> B -> C rather than A -> C because the A/B and B/C pools have more liquidity and lower fees.

As the number of blockchains and DEXs grows, aggregators are becoming the "front-end" of the entire industry.

Most professional traders and "whales" never trade on a single DEX; they always use an aggregator to ensure they aren't "throwing money away" on unnecessary slippage or high fees.

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