How Does Multi-Hop Routing Affect the Final Price a User Receives for Their Trade?

Multi-hop routing can have both positive and negative effects on the final price. On the positive side, it can unlock liquidity from pools that would otherwise be inaccessible, potentially leading to a better price.

On the negative side, each "hop" in the route incurs its own transaction fee and slippage. The more hops a trade takes, the higher the total fees and potential slippage will be.

DEX aggregators are designed to find the optimal route that balances these factors to achieve the best possible price for the user.