Is 0x Api performing "Dex aggregator" Swaps internally like 1Inch exchange?
1 Answer
The 0x API is a layer that sits on top of the 0x protocol which you can think of as an “aggregator of aggregators”. This means when you make a swap on 0x, it looks across 3 main sources of liquidity (order books, AMMs, and market makers) to provide you with the best price.
The diagram here - https://blog.0x.org/exploring-the-0x-defi-ecosystem/ - provides a good visual w/ examples of the different parties.
For more info about how the 0x protocol works, check out the architecture section of the 0x protocol docs.
Lastly, this blog post covers how for a given quote, 0x API's smart routing algorithm scans across DEXs for the best prices and will split up the order across the different sources (if relevant) to give the maximum return on a swap.
Hope this helps answer your question.
