What is a DeFi and CeFi Full Aggregation Protocol? A DeFi aggregator is a protocol that brings trades across various decentralized finance platforms (DeFi) into one location, thus saving users time and increasing efficiency for cryptocurrency trades.

As the name suggests, DeFi is spread out across different blockchains, whether Ethereum, Binance Smart Chain, or others. As a result, traders need to have track of the best trading prices with the lowest slippage.  It is also important to trade in decentralized exchanges with good liquidity.  The aggregation protocol helps identify this, thus making it easier for traders to optimize their trades.

In the process of optimizing trades, investors set aside funds, and they decide how much capital they are willing to risk in each trade.  Apart from setting aside funds, traders need to set aside funds as well. Most of them start small and increase gradually. Sensible traders start with a plan.  And, it is important for traders to be realistic about profits, for which they need to have a strategic plan, and they need to stick to the plan.

Planning the trade involves working with important details like trading prices of assets across different exchanges and the lowest slippage.

Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. Slippage can occur at any time, but is most prevalent during periods of higher volatility when market orders are used.

Slippage is very important during periods of high volatility. Therefore, it is important for traders to work with the lowest slippage to optimize their trades. Limit orders are used to eliminate or reduce slippage.  When limit orders are used, the order will not fill at a worse price.

Liquidity is also an important factor to avoid slippage.  Large orders face higher slippage, because low liquidity in the DEX can also increase slippage.

Only when traders have sufficient data around asset price and exchanges will it be practical for them to set slippage tolerance when working with a particular exchange of asset type.  With an aggregation protocol, they can choose to switch to better exchanges and asset types when making their trades.

Trade optimization is very important.  The optimization strategy is developed by evaluating the results of the trade each time and monitoring their performance. Traders make changes in their entry and exit rules, position-sizing, and other risk management approaches. For all this, it is important for them to work with reliable data, and the data should be made available on time to help traders strategize on time.

For instance, OpenOcean.Finance — the DeFi and CeFi aggregator has aggregated more than 20 mainstream DEX providers from ETH, BSC, Tron, and ONT, thus helping users to find the best swap prices by splitting them into paths to achieve the best price and lower slippage transactions.