Top DeFi Aggregators8 min read

A DeFi aggregator is a platform that uses many different DEXs and implements various buying and selling strategies to help users maximize profits and reduce high gas commissions and DEX trading fees.

Popular DeFi aggregators including 1 inch, Matcha, and Paraswap provided a total volume of $9.3 billion in the 2020 quarter.

According to Dune Analytics, the number of new users, daily transactions, and daily volumes increased in 2021, from $325 million per week in December 2020 to 450% more, with $1.8 billion recorded on February 14, 2021.

What is Yield Farming?

yield farming DeFi aggregator

To better understand the usefulness of a DeFi aggregator, it helps to go over the concept of Yield Farming. What is yield farming?

Yield Farming: A systematic approach to lending and staking on cryptocurrency assets in places that generate the highest returns and rewards. Yield farming involves the cryptocurrency holder locking up their funds in a smart contract, which specifies how much and how often a creditor is rewarded.

Without a DeFi aggregator, a yield farmer would click through several loan groups and decentralized exchanges, such as Aave and Compound, manually compare the best rates, available cryptocurrency token options, and migration funds.

Where does DeFi yield come from? Hypothetically, the other side of the decentralized finance equation has a borrower borrowing using their own cryptocurrency as collateral. Most of the time, these borrowers need liquidity on decentralized exchanges.

These rewards tend to be much higher, on average, than more traditional investments, but they come with much higher risks associated with them.

Steps to How Yield Farming Work

Most yield farming is usually done through lending ETH or an ERC-20 token in a decentralized protocol, with no custody in the money market.

  • Step 1: Add funds to a cash pool. These are smart contracts that hold the funds themselves, and the pools power a marketplace where users have the ability to trade, lend, or borrow tokens.
  • Step 2: Once you’ve added funds to a pool, you become a “liquidity provider” and start earning interest on commissions.
  • Step 3: You will then have the option to close a Leveraged Yield Farming position. To do this, log in to your wallet and ensure that the network is configured for the channel in question. You will always see your active positions in the “Your positions” section, and here you need to select a position you want to close and click on “Close position.” You will have to wait for your transaction(s) to be processed, and you will be able to see the tokens in your wallet.

The best DeFi aggregators

Definition of DeFi Aggregator – Instead of having to manually browse through multiple pools, users can use a DeFi aggregator to access a wide variety of decentralized exchanges and trading pools in a single dashboard that pulls information from a wide variety of pools and automated traders.

Here are some of the popular DeFi aggregators in the market today.

Zerion

zerion DeFi aggregator

Zerion is one of the best-known aggregators, integrating Compound, Curve, SushiSwap, and Balancer. This allows users to earn interest in stable coins, such as USDT and DAI or engage in liquidity mining through any of these major protocols.

Zerion also makes trading easier, as users can trade any LP or Vault token in a single transaction. The Zerion Dashboard also recently launched a bookmarks tab, allowing users to track their top DeFi token picks. Zerion is one of the most popular books and continues to show why so many people choose it as their preferred aggregator.

Zapper

zapper DeFi aggregator

Zapper lets you manage DeFi assets and liabilities through a simple interface and is generally considered one of the most intuitive DeFi aggregators – users can deploy different DeFi positions with a single click.

Users can enter and exit DeFi locations through Zapping In and Zapping Out features.

Zapper integrates with several DeFi platforms, such as 1inch, Aave, Alchemix, Alpha, and others, and allows you to rebalance your portfolio by transferring capital to other platforms. Portfolio rebalancing offers advantages over simply holding cryptocurrencies, and the strategy implemented by Zapper will help you minimize risk by rebalancing your portfolio over certain time periods.

Zapper also includes a multi-pooling feature that allows for diversification when it comes to asset allocation.

Seb Audet and Nodar Janashia founded Zapper.

DeFi Saver

defi saver DeFi aggregator

DeFi Saver may be the best aggregator for night mode users with its dark gray and green color scheme. Also, try to maximize space instead of packing everything in one place; a notable example is how to minimize the menu on the left when not in use.

From your portfolio page on the home screen, you can track your net worth and get a summary of how your assets are performing on individual protocols. From the left menu, users can choose to access a variety of protocols, including Aave, Compound, and MakerDAO, and receive more detailed information from there. Generally, DeFi Saver is a powerful DeFi aggregator with good looks and good performance to earn a spot on this list.

Plasma.Finance

plasma finance

With Plasma.Finance, you can DEX and SWAP aggregator, manage your portfolio, liquidity pools, Fiat on/off ramp, borrowing, and lending, as well as cross-chain asset trading from a single interface.

It is one of the effortless ways to buy and sell tokens, as it allows the integration of bank or credit cards. This is done in partnership with Rampa, Plasmapay, and Simplex.

Ilia Maskimenka founded plasma.finance. You can access Plasma.Finance by visiting Plasma.Finance

InstaDapp

instadapp

Like DeFi Saver, InstaDapp lets users minimize the left navigation menu, freeing up more space for data and analysis. It is a good interface option that definitely benefits the InstaDapp aggregator. InstaDapp also chooses the same aggregation method as DeFi Saver, choosing protocols instead of roles, making them quite similar from a curation standpoint.

Overall, InstaDapp looks awesome and is very easy to navigate, but with one small error: the pop-up “feedback button” in the bottom left corner can be a bit annoying. Anyway, it more than deserves its place in this list of the best DeFi aggregators.

There is definitely no doubt that decentralized finance is becoming an increasingly desirable way to generate revenue. DeFi aggregators are there as a single, simple interface to greatly improve the customer journey in the world of DeFi.

With high gas fees and DEX trading fees, aggregators will continue to evolve and help improve user experience and help users get the best rate for their token trades.

Matcha

matcha

Matcha is a DeFi platform that aims to ensure that cryptocurrency traders get the best rates on any cryptocurrency exchange using their own 0x API technology that verifies 23 decentralized exchanges (DEXs) at the same time.

It works with 0x, Uniswap, Kyber, Balancer, mStable, SushiSwap, Curve, Mooniswap, Bancor, and other currencies. Users can search twenty-three exchanges simultaneously and intelligently target their orders to trade securely with no hidden fees.

You don’t need an account, and there are no trading limits, deposit requirements, or withdrawal fees.

Will Warren created Matcha.

1 Inch

1 inch

1inch is a well-known DEX aggregator specializing in calculating the best prices for cryptocurrencies against several decentralized exchanges. The platform was launched with its governance token known as 1INCH, and the primary way for the user to earn 1INCH tokens is by providing liquidity to the liquidity platform.

The token is based on Ethereum, and the aggregator works by mining liquidity from different DEXs, which means you can get better exchange rates than a single DEX.

Sergej Kunz founded 1Inch.

Final Thoughts

An aggregator pulls the best prices from different DEXs, so you don’t have to check anything manually.

As such, you have the opportunity to make an informed decision on what to do next. DeFi aggregators are a much-loved innovation that has greatly simplified the DeFi landscape for beginners and experts alike.