What is 1inch?
1inch is a DEX aggregator that allows traders to source liquidity from multiple venues to achieve cost-effective swaps.
Background
Anton Bukov and Sergej Kunz founded 1inch in 2019 at the EthGlobal New York Hackathon.
How Does It Work
1inch considers the market depth of each liquidity pool and splits the trade across multiple pools to minimize price impact and slippage. The platform also allows businesses to place no-fee, on-chain limit orders, stop loss orders, and trailing stop orders. Users can also execute P2P orders or conduct auctions in a safe environment. Users can also provide liquidity using 1inch. The platform also offers a mobile-friendly, non-custodial wallet.
$1INCH is the governance token of 1inch, allowing holders to propose and vote on changes to the protocol. Users who stake 1INCH tokens can instantly vote to change swap fees, referral rewards, and other key platform parameters. Stakers are also refunded the gas costs incurred while interacting with the network, with higher token balances conferring higher refunds.
Key Takeaways
- 1inch raised $175M at a $2.25B valuation in 2021.
- 1inch is present on Ethereum, Binance Smart Chain, Polygon, Avalance, Harmony, and Near.
- In December 2022, 1inch released a long-awaited overhaul of their platform called Fusion. The overhaul improved swaps, reduced gas fees, and helped mitigate MEV.
