Liquidity aggregation combines liquidity from multiple sources to give users access to the best rates and minimal slippage during token swaps – all within a single place. By tapping into liquidity across the entire market, 1inch simplifies the swapping process, saving users time and effort. This efficient, decentralized approach enhances the swapping experience in a self-custodial environment.

DEX aggregation is crucial because it enables users to access competitive prices and optimal liquidity across multiple decentralized exchanges through a single interface. Since different DEXes may offer varying prices for the same asset, DEX aggregation eliminates the need for manual comparison, ensuring users get the best possible rates. Additionally, swaps can be split across different protocols and market depths, optimizing both swap prices and gas usage. With 1inch, users enjoy a seamless experience that consistently delivers top-tier rates and efficiency.

Compound is a decentralized lending protocol on the Ethereum blockchain that connects lenders and borrowers through algorithmically managed interest rate pools. Lenders deposit assets to earn interest, while borrowers use crypto collateral to take out loans. Interest rates are adjusted in real-time based on supply and demand. Compound’s native token, COMP, supports governance, allowing holders to vote on protocol changes and upgrades. The Compound III upgrade streamlines borrowing, making it easier to manage single-asset loans.