"DEX is an abbreviation for Decentralized Exchange — built on blockchain technology enabling greater security. The only challenge these decentralized exchanges face is — the lack of liquidity for smaller tokens and pricing. To solve this particular issue, DEX Aggregators are created. These aggregators are also called Liquidity Aggregators.
DEX aggregators are built on top of the existing DEXs, similar to how layer-2 solutions are built on top of blockchains. They provide a single point of entry for traders to view all available markets, order books and prices across various blockchains. And since these are built on complex algorithms, they can also optimize slippage, swap fees and token prices to benefit their users.
The first DEX aggregator was created as part of a hackathon competition in 2019. At the time, most participants felt that aggregated information from various decentralized exchanges was necessary. Sergej Kunz and Anton Bukov were the creators of the first DEX aggregator in the span of 18 hours during a hackathon which later served as the foundation for today’s — 1inch."