> For the complete documentation index, see [llms.txt](https://wowmax.gitbook.io/product-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wowmax.gitbook.io/product-docs/dex-aggregator/dex-aggregation-algorithm.md).

# DEX aggregation algorithm

This page explains how WOWMAX achieves the best exchange rates

WOWMAX is a platform that combines two powerful techniques - DEX aggregation and on-chain arbitrage - to optimize cryptocurrency trades. DEX aggregation means that WOWMAX breaks down a large trade into smaller parts and exchanges them on multiple decentralized exchanges simultaneously to minimize the overall negative price impact, or slippage.

WOWMAX built-in arbitrage: when a user swaps 2 tokens, WOWMAX arbitrages *all other tokens* and returns 100% profit to the user.

<figure><img src="https://3450943217-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4Nk6xWH541hE7ucFYFyN%2Fuploads%2FJnqmsP4GNmgKIxE5XhkT%2Fimage.png?alt=media&amp;token=3b17c1da-9f20-4bca-bc4c-36b7ee62bfdf" alt=""><figcaption></figcaption></figure>

In addition to aggregation WOWMAX algorithm extracts arbitrage profits from trading other tokens between pools with stablecoins and native chain tokens, further maximizing the final outcome for the trader.&#x20;

## WOWMAX's Arbitrage Algorithm

1\)     WOWMAX scans all available DEXes to identify mispriced tokens—instances where the price of a token differs across platforms due to market inefficiencies.

2\)     WOWMAX then executes arbitrage trades, buying the undervalued token on one DEX and selling it at a higher price on another.

3\)     The profits generated from these arbitrage opportunities are returned entirely to the trader, effectively enhancing the overall outcome of the trade.

*More complex routing due to built-in arbitrage algorithm results in better rates.*

<figure><img src="https://3450943217-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4Nk6xWH541hE7ucFYFyN%2Fuploads%2FNiR0AVQw8E1qEupCvIuf%2Fimage.png?alt=media&amp;token=cf664ce7-6934-410b-b663-ff91a98fd5fe" alt=""><figcaption></figcaption></figure>