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Liquidity aggregation is the core functionality of the 1inch clone script. Moreover, this is the solid reason why this platform stands out from other DeFi software. If you planning to create a DEX aggregator with the 1inch clone, knowing how it works can provide you with fundamental knowledge to create a platform more efficiently. Let me break down how it works now.

Liquidity aggregation is the process of uniting liquidity from various decentralized exchanges (DEXs) into a single platform. A 1inch clone software facilitates this by integrating liquidity from multiple DEXs and presenting it to users in an efficient way.

Imagine you’re looking to trade one cryptocurrency for another, for example, Ethereum (ETH) for Uniswap (UNI). Instead of sticking to just one decentralized exchange (DEX), a liquidity aggregator reviews several platforms—such as Uniswap, SushiSwap, and PancakeSwap—to find the best price and the most efficient trading route for you. 

This is an essential process to make lucrative trade because prices can fluctuate between exchanges due to differences in liquidity pools. By aggregating liquidity, traders can benefit from better rates, less slippage, and a smoother trading process.

To make trades more effective, the 1inch clone script incorporates smart routing algorithms. These algorithms look at various liquidity sources, break orders into smaller parts when necessary, and select the most efficient route for trades to ensure low slippage and improved pricing. 

For example, instead of making a big trade on a single decentralized exchange, the 1inch clone might split the trade into smaller pieces across several exchanges to stabilize the price.

This feature is more essential in this rapidly growing DeFi market today,  It offers users access to a large pool of liquidity, which means they can grab the best deals without worry. This aggregation functionality helps users to trade more efficiently and cost effectively.

Moreover, this aggregation technology helps all decentralized protocols work more seamlessly.