How Do Gas Fees Affect the Economic Viability of Splitting a Trade across Multiple Pools via an Aggregator?
Splitting a trade across multiple pools, while reducing slippage, requires multiple on-chain interactions, which increases the total gas fees paid. If the gas fees outweigh the savings from reduced slippage, the trade becomes economically non-viable.
DEX aggregators must constantly optimize the trade-off between minimizing slippage and minimizing gas costs, which is particularly challenging during periods of high network congestion.