Onchain Market Aggregation

Definition ∞ Onchain market aggregation is the process of combining liquidity and pricing information from multiple decentralized exchanges or protocols directly on a blockchain. This enables users to access the best available prices and deepest liquidity for digital asset trades without leaving the chain. It typically involves smart contracts that route orders across various liquidity sources.
Context ∞ Onchain market aggregation is a vital component for improving efficiency and user experience in decentralized finance. By consolidating fragmented liquidity, these aggregators help reduce slippage and optimize trade execution for participants. The continued development focuses on supporting more complex order types and integrating a broader array of decentralized liquidity pools.