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.

Balancer is a decentralized exchange and automated market maker (AMM) protocol built on Ethereum. Balancer allows users to swap and manage crypto assets in flexible liquidity pools that function like decentralized index funds, rewarding liquidity providers with fees. It introduced boosted pools to improve efficiency by generating yield on idle liquidity, especially for stablecoins. Balancer’s native token, BAL, is used for governance, allowing holders to vote on protocol upgrades and decisions, enhancing community-driven development within the DeFi ecosystem.