Understanding DEX Aggregators

If you've ever bought cryptocurrency, you've probably used an online crypto exchange. Depending on how it was built, exchanges are divided into two main categories: centralized exchanges (CEXs) and decentralized exchanges (DEXs). Since the price of cryptos varies from exchange to exchange, there have been ways to regulate the price and find a median value at a DEX.

This is where DEX aggregators come into the picture. These aggregators are complex algorithms that take many prices and factors into account to calculate the price of crypto on a decentralized exchange.

The Role of DEX Aggregators

Since their inception, DEX aggregators have had one role: finding the right price for every cryptocurrency listed at a decentralized exchange. Keep in mind that there's no such thing as a "right" price, as there will always be minor differences from exchange to exchange, just like every other market. A DEX aggregator's role is to find the best value it can from many different sources and list it at a decentralized exchange.

How to Build a DEX Aggregator

Developing a DEX aggregator is not that complicated if you have the necessary knowledge of blockchain development. To build a DEX aggregator, you first need to do a lot of research. This means fetching all the prices from different competitors and formulating a price for the coin in question. Then, with a smart contract, the algorithms that calculate the price are placed on the blockchain and allow the aggregator to be used as a calculator for every minor and major price change in the crypto market.