DEX Aggregator
Quick Answer
A DEX aggregator sources liquidity from multiple decentralised exchanges to find the best swap rate, used in payment processing to optimise exchange rates during settlement.
Full Definition
A DEX aggregator is a protocol that sources liquidity from multiple decentralised exchanges to find the optimal swap route and best execution price for a token trade. Examples include 1inch, Paraswap, and 0x. In payment processing, DEX aggregators ensure merchants receive the best exchange rate when customer payments in various tokens are converted to the settlement currency, minimising slippage and maximising value.
Related Terms
DAO (Decentralised Autonomous Organisation)
A DAO is an organisation governed by smart contracts and token-holder voting rather than traditional corporate structures, used in some payment protocols for governance.
dApp (Decentralised Application)
A dApp is a software application running on a blockchain rather than a centralised server, including payment widgets that merchants embed to accept crypto directly.
DeFi (Decentralised Finance)
DeFi is the ecosystem of financial applications on blockchain that operate without banks, powering the DEX aggregators and liquidity pools used in crypto payment settlement.
DEX (Decentralised Exchange)
A DEX is a peer-to-peer marketplace for trading crypto directly from wallets without depositing funds with a centralised intermediary.
Digital Asset
A digital asset is any asset in digital form with distinct ownership rights on blockchain, including cryptocurrencies, stablecoins, NFTs, and tokenised real-world assets.