SushiSwap launches Sushi DEX aggregator for liquidity support.

SushiSwap, an open-source decentralized exchange (DEX), has launched a new aggregator to enter the aggregation business. This DEX aggregator will enable SushiSwap customers to receive the best prices for trades on the platform without any additional procedures. This means that customers will be offered optimal pricing while also having access to a wide range of assets for trading.

The aggregator will also manage the range of liquidity that liquidity providers (LPs) can offer, thereby increasing the transaction fees they can earn. Liquidity has been a challenge for many DEX platforms as it is often unstable, hence the projected increased demand for the DEX aggregator. DEX aggregators typically act as liquidity aggregators from various sources such as traditional Automated Market Makers (AMMs) or Centralized Exchanges (CEXs).

DEX aggregators are financial protocols that help unify liquidity across different exchanges on a given chain. They employ a complex algorithm to establish the cheapest route based on several factors for a user’s swap in the available platforms. Aggregators are very popular in the Decentralized Finance (DeFi) sector due to the single, unified interface they offer for communication amongst crypto exchanges.

The DEX aggregator aims to optimize the price slippage and transaction fees through a mechanism, making it more convenient for users to trade. The fact that it provides users with a wide range of assets means that it is likely to attract more users to the platform. This, in turn, would lead to increased swap fees for liquidity providers and attract more liquidity overall in a positive feedback cycle.

Sushi DEX Aggregator Holds Numerous Benefits for LPs

SushiSwap’s team had been secretly working on building an aggregation router for a while now, as it is part of the platform’s bigger vision for 2023. The goal of the aggregator is to deliver optimal pricing to users while also opening up the sheer amount of assets they can trade with and can provide liquidity for LPs, increasing the number of swap fees they can accrue. The Sushi protocol is focused on becoming the hub of swaps in DeFi. The most significant and essential benefit of its aggregator is the fact that it is “biased”, hence routing many of the trades through Sushi and allowing for exposure to a plethora of tokens that were not available in the Sushi UI before.

Earlier this year, the DEX platform launched a new Perpetual contract futures exchange on the Sei Network, which is another strategy to generate a new revenue stream for the protocol as well as grow its influence.