DeFi Aggregator

What Is A DeFi Aggregator?

A Defi aggregator puts trades from numerous decentralized financial platforms (Defi) together, saving customers time and enhancing bitcoin trade efficiency.

Deeper Definition

Decentralized finance, often known as DeFi, is a new and intriguing category of financial applications based on blockchain technology. Defi is part of a broader decentralization movement that promotes global financial transparency, open-access, and non-custodial solutions.

As the name implies, Defi is distributed across many blockchains, including Ethereum and Binance Smart Chain. An ecosystem of independent financial protocols exists within each blockchain.

While these individual protocols offer great returns on lending your crypto, part of the appeal of Defi is swapping, selling, and trading crypto at the best rates. This can be challenging when financial information is spread across multiple protocols. 

While having a diverse set of protocols is advantageous for diversifying assets and obtaining the most significant interest rates from crypto loans, efficiency and convenience are hampered since financial data is dispersed over several protocols. Defi aggregators flourish in this environment.

Defi aggregators collect the best rates from DEXs, loan services, and liquidity pools. They then consolidate them in one spot so that users may optimize their transactions. Users who do not utilize an aggregator must go to each platform individually to compare costs and get the best deal for them. The user must then manually execute each smart contract transaction. While this technique may be enough for recreational cryptocurrency trading, it significantly restricts individuals from implementing complex trading strategies.

Defi Aggregator Example

1. Zapper is a Defi aggregator that lets you manage DeFi assets and liabilities using a simple interface. It’s widely recognized as one of the most user-friendly Defi aggregators. Users are able to deploy several Defi locations with a single click.

2. From a single dashboard, Zerion allows traders to uncover the potential of every asset on the market and trade at the best prices.

3. Manage your portfolio, Fiat on/off ramp, liquidity pools, DEX and SWAP aggregator, lending and borrowing, and cross-chain asset swap from a single interface using Plasma Finance.

4. Matcha is a Defi platform that aims to provide crypto traders with the lowest prices on any cryptocurrency exchange by utilizing proprietary 0x API technology that simultaneously evaluates 23 decentralized exchanges (DEXs).