SushiSwap Launches New DEX Aggregator To Support Liquidity

The decentralized exchange SushiSwap announced the launch of a DEX aggregator in its official blog, allowing users to obtain the best price when trading on the agreement without any additional steps.

The DEX aggregator aims to provide users with optimal pricing while expanding the types of assets users can trade and the range of liquidity that liquidity providers (LPs) can provide, increasing the transaction fees they can earn.

Also, because the liquidity problem on most DEXs is not stable, there will be more demand for a new type of product, the DEX Aggregator. They are liquidity aggregators from various sources, such as traditional AMMs or CEXs themselves.

In a word, the DEX aggregator is a financial protocol that provides traders and investors with access to different trading pools using a single dashboard. They rely on a complex algorithm to calculate and aggregate based on many factors before choosing the best provider for a particular token swap on the available platforms.

DEX aggregator will have a mechanism to optimize the price slippage as well as transaction fees for users, making it more convenient for them to trade.

In terms of the token model, because it does not provide as much buy demand as AMMs, in addition, transaction fees will be paid in tokens of the blockchain itself (ETH, BNB, ..), so tokens of DEX aggregator will not have a sturdy stand.

Since the aggregator provides users with a new abundance of asset possibilities, it follows that it will draw even more users to the platform, which leads to greater swap fees for LPs and attracts more liquidity overall in a positive feedback cycle.

The SushiSwap aggregators release will help users, LPs, and the protocol as a whole. Users are now more familiar with a variety of protocols and assets. By integrating the liquidity of all DEXs and Trident pools, they may have their orders executed at optimum rates, resulting in more trading and, as a result, swap fees for LPs.

In the future, SushiSwap plans to increase access to liquidity through other DEXs and directly link with market maker flows; at the same time, this year will continue to focus on improving limit orders and overall order filling.