Blockchain & Cryptocurrency Glossary

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Aggregators' Network

1 min read
Pronunciation
[ə-greg-ay-tərz net-wûrk]
Analogy
An aggregators’ network is like a travel meta‑search engine that scans dozens of airlines and booking sites to find the best itinerary and price.
Definition
A protocol layer that consolidates liquidity or data from multiple sources—such as DEXs, lending pools, or oracles—to provide optimal routing and pricing for end users.
Key Points Intro
Aggregator networks unify fragmented liquidity and information across DeFi protocols.
Key Points

Smart order routing: Splits trades across venues to minimize slippage.

Cross-chain support: Bridges liquidity between different blockchains.

API abstraction: Single interface for diverse protocols.

Fee optimization: Dynamically selects pools with lowest fees.

Example
1inch’s Pathfinder algorithm examines dozens of DEX pools on Ethereum and BSC, then routes a single swap across multiple pools to achieve the best price.
Technical Deep Dive
Nodes fetch real‑time depth from on‑chain subgraphs, build a weighted graph of token pairs, then run Dijkstra or Bellman-Ford to find minimal slippage paths. Aggregation smart contracts execute multi-hop swaps via `swap()` functions, handling approvals, deadlines, and slippage checks. Cross-chain routers leverage liquidity bridges and relayers.
Security Warning
Complex routing logic can introduce smart contract vulnerabilities; audit aggregation contracts and monitor MEV risks.
Caveat
Pathfinding adds latency and gas overhead; extreme fragmentation may yield diminishing returns.
Related Terms
Subgraph

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