How Does a "DEX Aggregator" Help Mitigate Liquidation-Induced Slippage? ⎊ Path

How Does a “DEX Aggregator” Help Mitigate Liquidation-Induced Slippage?

A DEX aggregator splits a large liquidation order across multiple decentralized exchanges and liquidity pools to find the best possible execution price. By routing the order through various sources, it minimizes the price impact on any single pool, thereby reducing the overall slippage and mitigating the rapid price drop caused by the liquidation.

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Glossar

DEX Aggregator

Aggregation ⎊ A DEX Aggregator functions as a meta-layer within decentralized exchanges, routing trades across multiple liquidity pools to minimize slippage and optimize execution prices for users.