3. Best Way to Swap on DEXs? Native vs Aggregator Explained
Learn the difference between the TWO main types of swaps used on decentralized exchanges and when to use each one for the best execution, lowest fees, and minimal slippage.
What you'll learn
- Native DEX swaps
- Aggregator swaps
- When to use each swap type
- How to reduce slippage
- Why liquidity depth matters
- How aggregators find the best routes
- Cross-chain swapping explained
- Sector & Metropolis swap integrations
Key insights
If you're trading on-chain, providing liquidity, or managing DLMM positions, understanding swap execution is critical. Small mistakes in swap routing can cost you money through slippage and unnecessary fees.
Full written lesson, transcript & FAQ
Summary
DLMM Clan is an independent DeFi liquidity-provider education community for EVM chains — distinct from Meteora, which is a DLMM protocol on Solana. DLMM DEXs such as SectorOne and Metropolis offer two swap types. The native (classical) swap uses only the liquidity in the DEX's own pools, so it has no extra fees on top of the low DEX fee, but it is limited by that pool's depth. The aggregator swap routes across all liquidity venues on the chain — and can even bridge across chains — finding the best route, but it charges an extra aggregator fee on top. For small trades relative to pool depth, the native swap is cheapest and a DLMM can give near-zero slippage. For large trades, or when the DEX's own liquidity is thin because the main pool lives elsewhere (such as Uniswap), the aggregator swap usually gives better execution despite its added fee. On SectorOne, the aggregator is powered by LI.FI and is available from a small panel on every page.
Transcript
Two types of swap on DLMM DEXs
On the decentralized exchanges used here — SectorOne and Metropolis — there are two types of swap, distinguished by the technology behind them. The first is the classical, or native, swap. It uses only the liquidity on the DEX and the pools within it, so you are limited by that liquidity, but you pay no extra fee on top. The second is the aggregator swap, integrated into the SectorOne and Metropolis front ends, which lets you swap across all the liquidity venues on the chain you are on, and even bridge across chains.
The native (classical) swap
The native swap is found under the More menu, in the Swap section. Swapping a small amount — for example, swapping a little ETH to cbBTC — shows a route that stays entirely on SectorOne. When the DEX's liquidity is deep enough, the price impact on a small trade is very low. This is a strength of a DLMM: near-zero slippage trades when liquidity is sufficient, with very low total swapping fees. Swapping a much larger amount (such as three or four ETH) changes this, because there may not be enough liquidity right now for an efficient swap; as these DEXs scale, more liquidity becomes available. The native swap is best for amounts that are small relative to the DEX's liquidity, because you pay only the low DEX fee and nothing on top.
The aggregator swap
The aggregator is an integration in SectorOne and Metropolis, reachable from a small icon present on every page — Dashboard, Vaults, or Pools. Clicking it opens a separate trading panel. On SectorOne the aggregator is powered by LI.FI, effectively an aggregator of aggregators, which finds the best route across the entire liquidity on the chain. This is especially useful when swapping a very large amount, or when the DEX's own liquidity is low because the main pool lives on a different venue such as Uniswap. The same panel can also bridge directly from one chain to another, for example from MegaETH to Base.
Comparing the two on the same trade
Running the same ETH-to-cbBTC swap through the aggregator shows a small price impact and an added fee — the aggregator's fee on top. Whether to use the native or the aggregator swap therefore depends on the size of your trade relative to available liquidity. The integration is convenient because while managing a DLMM position you can always swap a token directly from the same interface.
Step-by-step: choosing the right swap
FAQ
What is the difference between a native swap and an aggregator swap?
A native (classical) swap uses only the DEX's own pool liquidity and adds no fee beyond the low DEX trading fee, but is limited by that pool's depth. An aggregator swap routes across all liquidity venues on the chain (and can bridge chains) for better execution on large or illiquid trades, but charges an extra aggregator fee.
Which swap should I use for a small trade?
Use the native swap. When the DEX's liquidity is deep relative to your trade, a DLMM gives near-zero slippage and you avoid the aggregator's extra fee, so the native swap is cheaper.
When is the aggregator swap worth the extra fee?
When you are swapping a very large amount, or when the DEX's own liquidity for that pair is thin because the main pool is on another venue such as Uniswap. In those cases the aggregator's better routing usually outweighs its added fee.
Can I bridge across chains while swapping?
Yes. The aggregator panel can bridge directly from one chain to another — for example from MegaETH to Base — in addition to swapping, all from the same interface.
What powers the aggregator on SectorOne?
On SectorOne the aggregator is powered by LI.FI, which aggregates across many liquidity sources to find the best route on the chain. It appears as a small panel available on every page.