What are DEX aggregators & how do they save traders money
In 2025, assets worth over $5 billion are traded daily on decentralized exchanges (DEXs). The number of traders in the DeFi market has grown almost threefold since the beginning of 2024. Yet, many still lose hundreds or thousands of dollars on hidden fees and unfavorable exchange rates due to the fragmentation of DEXs. When each exchange has its own liquidity, fees, and pool of buyers and sellers, the chances of buying or selling a token at a bad price are very high. This especially affects traders operating with volumes starting from $10,000. In the world of decentralization, a solution has emerged — DEX aggregators. This isn’t just hype, but a powerful tool that helps you trade cheaper, faster, and more safely. Let’s take a detailed look at how exactly they save your money and why in 2025 it’s hard to imagine professional trading without them.
What are DEX aggregators
A DEX aggregator is a service that connects to dozens of decentralized exchanges and can find the most profitable token rates in real time. When you want to swap one asset for another, the aggregator compares prices on dozens of DEXs like Uniswap, SushiSwap, Curve, Balancer, and others. As a result, it offers a deal with minimal costs, even if it needs to split your order into several parts and execute them across different platforms. In 2025, dozens of aggregators operate on the market, with the largest being 1inch, Matcha, and Paraswap. They allow traders to get the best rates on 98% of popular tokens, including low-liquidity pairs, which is especially relevant for the DeFi segment.
How an aggregator works
The technology of an aggregator is based on complex order-routing algorithms. When a trader sends a swap request, the aggregator analyzes data from dozens of DEXs about prices, order volumes, and fees. Then it builds the optimal path for executing the deal. For example, to swap USDC for ETH, the aggregator might suggest not a direct swap, but a chain through DAI and WETH if that results in a better final rate. All operations are handled through a smart contract that automatically splits the order, sends parts to the required exchanges, and returns the final result to your wallet. On average, calculating the optimal route takes about 1–2 seconds. Thanks to this, the trader gets the result almost instantly, which is especially important in periods of high volatility.
Why it’s more profitable to use an aggregator than trade directly on a DEX
If a trader goes directly to one DEX, they depend entirely on the liquidity of that exchange. For example, Uniswap may show an attractive rate, but if the pool doesn’t have enough volume, the price can quickly shift for the worse — this is called slippage. According to DeFiLlama, average slippage on trades over $20,000 in 2025 is 0.4–0.6% on individual DEXs, which equates to losses of $80–120 on a single trade. Aggregators, however, combine liquidity from dozens of platforms, allowing them to minimize slippage to 0.1–0.2%. This saves hundreds of dollars even on mid-sized trades. For traders making dozens of transactions per day, this can result in thousands of dollars saved per month.
How aggregators help save on fees
Many people think that aggregators charge an extra fee, making trades more expensive. But in reality, aggregators often help reduce total costs even after their own fees. That’s because on networks like Ethereum, gas fees can vary several times depending on the DEX. For example, during peak times, the gas cost of a swap on Uniswap can reach $70, while on another DEX it might be only $30. The aggregator analyzes not just rates but also gas costs and offers a routing that minimizes overall expenses. According to a Dune Analytics report from June 2025, users of aggregators save on average 15–25% on gas fees compared to direct trades on DEXs. For large traders, this can mean thousands of dollars in monthly savings.
What’s the catch and what are the risks
Aggregators are not without weaknesses. The first is the risk of vulnerabilities in smart contracts. Despite audits and checks, bugs can still appear that may lead to loss of funds. For example, in 2024, a bug was discovered in one new aggregator that allowed funds to be locked in the contract for several hours. The second risk is frontrunning, where bots see your transaction in the mempool and execute a similar one before you, changing the rate in their favor. This can lead to losing part of your funds during the swap. To protect yourself, choose only well-known aggregators with multimillion-dollar liquidity and transparent code. It’s also important to remember: an aggregator cannot protect you from sudden price drops of a token during the trade. If the price starts falling, the aggregator won’t be able to lock it at the previous level — that’s an inherent market risk.
If you want to understand how aggregators work, learn to use them for profitable trading, and grasp the intricacies of working with DeFi, I recommend the courses on the EMCD Academy platform. There you will find detailed lessons with practical examples and can quickly get up to speed even without prior experience in crypto.
