What exactly does a DeFi aggregator do?

In simple terms, it is to package and integrate services scattered across various decentralized finance platforms, allowing you to complete all operations in one interface.

Imagine that there are dozens of DeFi platforms on the market, each with different token exchange prices, lending rates, and liquidity mining yields. To find the most cost-effective one, you have to compare them on one platform—how much time would that take? An aggregator is a tool that helps you save this hassle.

Its mechanism is actually quite smart: it automatically scans real-time quotes from different platforms through smart contracts, using algorithms to calculate where the price is optimal and the cost is the lowest. If needed, it can also split your transaction into several parts, executing them on different platforms to ensure you get the best overall solution.

**What can an aggregator help you with?**

- Find the best exchange rate when exchanging tokens
- Compare the interest rate differences among various platforms when borrowing.
- Maximizing liquidity mining returns
- One-stop management of multiple DeFi protocols

Sounds great? It is indeed quite practical, but the risks also need to be clarified. Smart contracts themselves may have code vulnerabilities, and with the cryptocurrency market being highly volatile, sometimes price changes can happen faster than algorithms can react. So while using a DeFi aggregator is convenient, the necessary groundwork still needs to be done.

Why are so many people starting to use aggregators? Because the DeFi ecosystem is becoming increasingly complex, with too many platforms, ordinary users simply don't have the energy to research them one by one. Aggregators lower the participation threshold, allowing more people to access the conveniences of Decentralized Finance—without relying on traditional banks and without needing to become a tech expert.

Of course, when choosing an aggregator, you should pick a reliable one. Check which protocols it integrates with, how the user experience is, and how the security audits have been conducted. After all, the money is yours, and it's always wise to be cautious.