ParaSwap is a middleware streamlining user’s interactions with various DeFi services, aggregating many decentralized exchanges (DEX) and other services in one comprehensive interface. It gathers liquidity from the main decentralized exchanges together in a convenient interface abstracting most of the swaps’ complexity to make it convenient and accessible for end-users. In addition to making it look easier for the end user, for any given trade, ParaSwap checks the rates on all supported DEX and implements further optimizations to get the best rate possible.
As liquidity is distributed between various exchanges, aggregators are a key piece in the DEX ecosystem as no one wants to check each one of them for the best rate available. More importantly, for large trades, it is often way better to split the operation between different DEXes to optimize the trade. While 1inch led the market with its aggregator, it was just a question of time before other similar solutions started taking some market shares and ParaSwap is definitely a strong competitor. No token has been associated with the project yet. While it is possible that the team will decide to airdrop one to the users of the protocol, as 1inch did a few months back, nothing is sure as they recently raised more than $3M from well respected DeFi players, among others.