Trading

·

January 31, 2024

Why use a DEX aggregator?

Anthony Allen

When liquidity is decentralized, it’s hard to get the best price for your trade. DEX aggregators put all the best parts of DeFi in one place, for better trade execution and the best value for money.

As decentralized finance (DeFi) grows exponentially, traders like you can be left wondering where to find the best deals. With liquidity fragmented across hundreds of decentralized exchanges (DEXs), you might end up swapping one token on Uniswap, another on SushiSwap, and still never be sure that you made the right choice.

That’s why we built Matcha, a DEX aggregator that does the work for you! Matcha unites all available liquidity from over 100 DEXs in one place and chooses a route that gets you the best deal for your money. So not only do you get access to the deepest liquidity, but smart order execution completes your trade from multiple sources at once to reduce price impact and maximize the value you get.

How do DEX aggregators work?

One platform to trade on every DEX! An aggregator is a platform that connects data from many other trading platforms together in one place. DEX aggregators can also be thought of as liquidity aggregators, because they bring together lots of different sources of crypto liquidity into one place, letting you trade on hundreds of DEXs at once. It’s all done by automated systems so there’s no extra effort required from you as a trader - you just say what you want to buy and the aggregator does the work for you. 

Behind the scenes, each DEX aggregator has its own way of pulling together data from different sources to aggregate liquidity and optimize trade execution trades. Platforms like Matcha even offer specialized features such as limit orders, direct connections to private market makers through RFQ transactions, and protection from MEV to ensure you don’t lose money through frontrunning or sandwich attacks

It’s similar to how a broker in traditional finance will consolidate offers from various exchanges to find the optimal deal for their client, but trustless and automated. A DEX aggregator like Matcha scouts decentralized exchanges to find you the best deals while reducing transaction fees and speeding up trades. Of course, Matcha does it without making you provide proof of identity or wait for the market to open!

Aggregated liquidity  

Most popular DEXs you might have used are powered by Automated Market Makers (AMMs), which rely on liquidity providers to contribute tokens to liquidity pools, in exchange for incentives. The liquidity in these pools is in many cases publicly available, so you do not need to use the frontend interface to be able to access it.

You can access Uniswap liquidity without the 0.15% swap fee on Matcha.

DEX aggregators take those pools of publicly available liquidity and make them all accessible through a single interface. Each aggregator has different mechanisms for processing trades, but Matcha uses 0x Swap API to provide free swaps and automatically pick and choose the best path for your trades, executed in seconds on any of the 4 million tokens and 9 chains Matcha supports.

Smart order routing

It’s not enough to know where there’s sufficient liquidity for your trade. DEX aggregators also need to know how to interact with different liquidity sources to deliver the most competitive pricing every time you trade. 

Smart order routing is the term used to describe how Matcha intelligently picks and chooses the right path, often executing a portion of your order on one liquidity provider, and the rest on another - or even several others - to ensure the absolute maximum value lands in your account, consistently. 

Example of a DEX aggregator routing trades through multiple exchanges
See your execution path in the trade module.

Next time you swap on Matcha, take a look at the Route field in the trade module. If you see more than one icon, it means your trade will be executed across multiple providers to get you the best deal. You can even hover over the icons to see exactly how the order is split between sources for optimal execution!

Better trade prices with lower slippage

Slippage is the difference between the price you are quoted when you place a trade, and the price that you receive when your transaction is actually executed onchain. When you make a trade on a regular DEX, you are relying on the limited liquidity available in their pools to absorb the price impact of your order. If that liquidity isn’t sufficient, your order will cause prices to change while it is being executed, leaving you paying more for less.

Using a DEX aggregator, there are many more options for where your trade is executed, so you can rely on Matcha to deliver minimal slippage, even for high-value trades. It also means the price you’re quoted will be the price you get, so you won’t be surprised by fewer tokens landing in your wallet than you expected. 

What makes Matcha the best DEX aggregator?

By now you should understand how DEX aggregators can reliably deliver the best value for money on your trades, leveraging the deepest liquidity available and optimal routing to beat individual DEXs on price and execution speed. But what's the best DEX aggregator to use? We might be biased, but we're pretty sure it's Matcha - and here's just a few reasons why!

Millions more tokens to trade

Yes - millions! By tapping into hundreds of DEXs and indexing every new token that launches, Matcha lets you search over 4 million tokens to uncover DeFi gems and 100x moonshots, as well as bridged and native tokens. While most DEXs, and even CEXs, let you trade a few hundred tokens, you can be the first to find new opportunities within 15 minutes of a new token being deployed!

The lowest trade failure rates

Decentralization comes with its downsides, and one of the most frustrating things you can experience as a trader is having your trade fail to execute at a critical time. With industry-leading infrastructure from 0x powering Matcha, you can enjoy the lowest trade failure rates of any DEX or DEX aggregator!

Messari chart showing DEX revert rates
Messari's Q3 brief confirms revert rates are lowest on Matcha.

On average, swaps made on Matcha have a revert rate of around 6% compared to over 10% on Uniswap and 1inch! And that can be brought down even further by using Matcha Auto, with revert rates of 1% or less. Don’t let your DEX hold you back - catch every opportunity that comes your way with Matcha.

The most user-friendly experience in crypto

Matcha's user interface evolved from the original 0x trading platform, which reduced the complexity of DeFi to a single trade module where you just enter how much of one token to buy and which token you want in exchange. By providing a straightforward, easy-to-use platform, Matcha has enabled both new and experienced traders to navigate and execute trades efficiently without compromising on decentralization. 

Building the DEX you want

New features on Matcha aren’t built on a whim, we spend the majority of our development time working on the features traders like you have asked for! Just look at some of the recent updates we’ve shipped - our latest trade history page, limit order improvements, and many more features both past and future have been built in direct response to votes made by our community. 

Want to add your own feature suggestion? Take a browse of all open feature requests and upvote your favorite, or add a new one if it’s not there already! 

Wherever you trade

While not every DEX aggregator is available globally, Matcha is proud to meet the highest regulatory standards, making it available to traders in non-sanctioned countries across the world - even to users in the USA, where many other DEX aggregators and even centralized exchanges are blocked! That means that you can safely enjoy all the benefits listed above at home and abroad, and trade without limits wherever you are. 

Aggregating everything you need in one place

Access to the deepest liquidity is essential if you want the best prices, but the DEX aggregator experience extends beyond that by ensuring you have everything that you need in one place. Decentralization is great, but it doesn’t mean you need to fragment your trading across dozens of platforms to optimize your profits. 

With Matcha, you have all the professional trading tools you need in one easy-to-use interface. Instant, free swaps that let you move between assets with zero friction; limit orders that you can set and forget to catch market dips; and MEV protection through Matcha Auto or RFQ - it’s all just a click away!

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Trading

·

November 23, 2023

Why use a DEX aggregator?

Using DEX aggregators and an icon showing aggregated liquidity

When liquidity is decentralized, it’s hard to get the best price for your trade. DEX aggregators put all the best parts of DeFi in one place, for better trade execution and the best value for money.

As decentralized finance (DeFi) grows exponentially, traders like you can be left wondering where to find the best deals. With liquidity fragmented across hundreds of decentralized exchanges (DEXs), you might end up swapping one token on Uniswap, another on SushiSwap, and still never be sure that you made the right choice.

That’s why we built Matcha, a DEX aggregator that does the work for you! Matcha unites all available liquidity from over 100 DEXs in one place and chooses a route that gets you the best deal for your money. So not only do you get access to the deepest liquidity, but smart order execution completes your trade from multiple sources at once to reduce price impact and maximize the value you get.

How do DEX aggregators work?

One platform to trade on every DEX! An aggregator is a platform that connects data from many other trading platforms together in one place. DEX aggregators can also be thought of as liquidity aggregators, because they bring together lots of different sources of crypto liquidity into one place, letting you trade on hundreds of DEXs at once. It’s all done by automated systems so there’s no extra effort required from you as a trader - you just say what you want to buy and the aggregator does the work for you. 

Behind the scenes, each DEX aggregator has its own way of pulling together data from different sources to aggregate liquidity and optimize trade execution trades. Platforms like Matcha even offer specialized features such as limit orders, direct connections to private market makers through RFQ transactions, and protection from MEV to ensure you don’t lose money through frontrunning or sandwich attacks

It’s similar to how a broker in traditional finance will consolidate offers from various exchanges to find the optimal deal for their client, but trustless and automated. A DEX aggregator like Matcha scouts decentralized exchanges to find you the best deals while reducing transaction fees and speeding up trades. Of course, Matcha does it without making you provide proof of identity or wait for the market to open!

Aggregated liquidity  

Most popular DEXs you might have used are powered by Automated Market Makers (AMMs), which rely on liquidity providers to contribute tokens to liquidity pools, in exchange for incentives. The liquidity in these pools is in many cases publicly available, so you do not need to use the frontend interface to be able to access it.

You can access Uniswap liquidity without the 0.15% swap fee on Matcha.

DEX aggregators take those pools of publicly available liquidity and make them all accessible through a single interface. Each aggregator has different mechanisms for processing trades, but Matcha uses 0x Swap API to provide free swaps and automatically pick and choose the best path for your trades, executed in seconds on any of the 4 million tokens and 9 chains Matcha supports.

Smart order routing

It’s not enough to know where there’s sufficient liquidity for your trade. DEX aggregators also need to know how to interact with different liquidity sources to deliver the most competitive pricing every time you trade. 

Smart order routing is the term used to describe how Matcha intelligently picks and chooses the right path, often executing a portion of your order on one liquidity provider, and the rest on another - or even several others - to ensure the absolute maximum value lands in your account, consistently. 

Example of a DEX aggregator routing trades through multiple exchanges
See your execution path in the trade module.

Next time you swap on Matcha, take a look at the Route field in the trade module. If you see more than one icon, it means your trade will be executed across multiple providers to get you the best deal. You can even hover over the icons to see exactly how the order is split between sources for optimal execution!

Better trade prices with lower slippage

Slippage is the difference between the price you are quoted when you place a trade, and the price that you receive when your transaction is actually executed onchain. When you make a trade on a regular DEX, you are relying on the limited liquidity available in their pools to absorb the price impact of your order. If that liquidity isn’t sufficient, your order will cause prices to change while it is being executed, leaving you paying more for less.

Using a DEX aggregator, there are many more options for where your trade is executed, so you can rely on Matcha to deliver minimal slippage, even for high-value trades. It also means the price you’re quoted will be the price you get, so you won’t be surprised by fewer tokens landing in your wallet than you expected. 

What makes Matcha the best DEX aggregator?

By now you should understand how DEX aggregators can reliably deliver the best value for money on your trades, leveraging the deepest liquidity available and optimal routing to beat individual DEXs on price and execution speed. But what's the best DEX aggregator to use? We might be biased, but we're pretty sure it's Matcha - and here's just a few reasons why!

Millions more tokens to trade

Yes - millions! By tapping into hundreds of DEXs and indexing every new token that launches, Matcha lets you search over 4 million tokens to uncover DeFi gems and 100x moonshots, as well as bridged and native tokens. While most DEXs, and even CEXs, let you trade a few hundred tokens, you can be the first to find new opportunities within 15 minutes of a new token being deployed!

The lowest trade failure rates

Decentralization comes with its downsides, and one of the most frustrating things you can experience as a trader is having your trade fail to execute at a critical time. With industry-leading infrastructure from 0x powering Matcha, you can enjoy the lowest trade failure rates of any DEX or DEX aggregator!

Messari chart showing DEX revert rates
Messari's Q3 brief confirms revert rates are lowest on Matcha.

On average, swaps made on Matcha have a revert rate of around 6% compared to over 10% on Uniswap and 1inch! And that can be brought down even further by using Matcha Auto, with revert rates of 1% or less. Don’t let your DEX hold you back - catch every opportunity that comes your way with Matcha.

The most user-friendly experience in crypto

Matcha's user interface evolved from the original 0x trading platform, which reduced the complexity of DeFi to a single trade module where you just enter how much of one token to buy and which token you want in exchange. By providing a straightforward, easy-to-use platform, Matcha has enabled both new and experienced traders to navigate and execute trades efficiently without compromising on decentralization. 

Building the DEX you want

New features on Matcha aren’t built on a whim, we spend the majority of our development time working on the features traders like you have asked for! Just look at some of the recent updates we’ve shipped - our latest trade history page, limit order improvements, and many more features both past and future have been built in direct response to votes made by our community. 

Want to add your own feature suggestion? Take a browse of all open feature requests and upvote your favorite, or add a new one if it’s not there already! 

Wherever you trade

While not every DEX aggregator is available globally, Matcha is proud to meet the highest regulatory standards, making it available to traders in non-sanctioned countries across the world - even to users in the USA, where many other DEX aggregators and even centralized exchanges are blocked! That means that you can safely enjoy all the benefits listed above at home and abroad, and trade without limits wherever you are. 

Aggregating everything you need in one place

Access to the deepest liquidity is essential if you want the best prices, but the DEX aggregator experience extends beyond that by ensuring you have everything that you need in one place. Decentralization is great, but it doesn’t mean you need to fragment your trading across dozens of platforms to optimize your profits. 

With Matcha, you have all the professional trading tools you need in one easy-to-use interface. Instant, free swaps that let you move between assets with zero friction; limit orders that you can set and forget to catch market dips; and MEV protection through Matcha Auto or RFQ - it’s all just a click away!

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