DexHunter: Benefits of DEX Aggregation Explained
How DEX Aggregation and Partial Fills Offer Better Prices and Flexibility, Illustrated with a 1000 ADA Example
![DexHunter: Benefits of DEX Aggregation Explained](https://miro.medium.com/v2/resize:fit:1400/format:webp/0*m6_-rhMXzFB7oVCh.png)
How DEX Aggregation and Partial Fills Offer Better Prices and Flexibility, Illustrated with a 1000 ADA Example
DEX Aggregation Benefits
Let's take a look at a couple of direct benefits for traders from using DexHunter DEX aggregator compared to trading on a single DEX:
- Best Trading Prices: By accessing multiple exchanges at once, DEX aggregation ensures traders find the best available price for their assets, optimizing their buying or selling experience.
- Partial Fills: DEX aggregation minimizes the risk of price changes during trade execution, making transactions more predictable and closer to the expected price.
- Enhanced Liquidity: By pooling the liquidity from various exchanges, DEX aggregation makes it easier to trade large quantities without substantially affecting the market price, accommodating various trading needs and preferences.
Example: Swapping 1000 ADA to Y Token
You want to swap 1000 ADA for Y Token. You have three options:
Using DexHunter (DEX Aggregator):
- DEX A: 600 ADA at 2 Y Tokens each = 1200 Y Tokens.
- DEX B: 400 ADA at 1.95 Y Tokens each = 780 Y Tokens.
- Total using aggregator: 1980 Y Tokens.
Swapping Directly on DEX A (With Price Impact)
- Total on DEX A only: 1960 Y Tokens.
Swapping Directly on DEX B (With Price Impact)
- Total on DEX B only: 1940 Y Tokens.
Summary
Using an aggregator, you get 1980 Y Tokens, which is 20 more than using DEX A alone and 40 more than using DEX B alone. The aggregator leverages the best prices, minimizing the price impact, and maximizing the Y Tokens you receive, this also works the other way around for selling tokens for ADA.
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