Token Aggregation

Definition ∞ Token aggregation is the process of combining multiple digital tokens into a single, unified representation or transaction. This can involve bundling different tokens for a single swap or consolidating liquidity from various decentralized exchanges. The goal is often to optimize trading efficiency, reduce fees, or simplify portfolio management. It enhances market access and liquidity.
Context ∞ Token aggregation is a key feature in many decentralized finance platforms. Innovations in this area aim to provide users with the best possible prices by routing orders across multiple liquidity sources. The continued advancement of aggregation technologies is important for enhancing the overall usability of the DeFi ecosystem.