Traders are neither altruistic nor loyal. All they want is best execution.
Imagine you want to buy a token on Ethereum. Today there are many options for doing so. You can buy on Uniswap, SushiSwap, Balancer, or a whole host of other decentralized exchanges that provide liquidity on-chain.
But how do you know you’re getting the best price?
For smaller traders best execution may not matter. Their trade sizes tend not to be large enough to have a material impact on liquidity pools, so slippage is negligible. But if you’re a larger trader attempting to buy six figures worth or more of a token on-chain, slippage matters a lot.
The solution is to use a DEX aggregator that intelligently routes your orders across all the popular DEXs on Ethereum to find the best possible price including slippage, fees, and gas costs. Remember, large traders don’t care whether they’re using Uniswap or SushiSwap, all they want is best execution. So, it should come as no surprise that DEX aggregators have seen significant usage over the past year. In total they regularly account for more than 10% of total DEX volumes daily, with 1inch being the clear market leader.

Ryan Watkins was a Senior Research Analyst at Messari. Previously, he worked at Moelis & Company as an Investment Banking Analyst where he worked on deals in the technology, telecom, and fintech sectors. Ryan graduated Magna Cum Laude from the Gabelli School of Business at Fordham University.