1inch Network is a decentralized exchange platform with three main technologies; 1inch aggregation protocol, 1inch liquidity protocol, and 1inch limit order protocol.
What is 1inch Network?
1inch officially launched in 2020 and is now one of the leading decentralized exchange aggregators. It was founded in 2019 by Sergej Kunz, a former software engineer at Porsche, and Anton Bukov, a former smart contract engineer at NEAR Protocol. Since then, roughly $15 million in funding has been raised by 1inch from companies including Galaxy Digital, Binance Labs, and Pantera Capital.
1inch Network provides one of the best rates for digital asset swap (exchange) on the platform by finding the most efficient routing flow available from various decentralized exchanges at the time of the swap. This means users can benefit by getting a cheaper transaction fee and a more favorable exchange rate. 1inch also developed a mobile wallet app that has the same features and technology as the web DApp version.
The advanced technological features of 1inch Network were built in-house by the 1inch team and include:
- 1inch aggregation protocol: This protocol ensures atomic transactions that are cost-effective and safe via the use of numerous protocols and carrying out validations and verifications.
- 1inch liquidity protocol: This AMM protects users and offers capital efficiency to liquidity providers.
- 1inch limit order protocol: This protocol offers a limit order functionality in DeFi that is exceptionally innovative and agile.
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In December 2020, 1inch launched its native cryptocurrency – 1inch Token. The 1inch Token is a governance and utility token. It provides instant governance to token holders with the opportunity to have a say on the runnings of the 1inch platform and receive rewards. 1inch Token is a multichain token that is currently available on Ethereum, Binance Smart Chain, and Polygon.
The 1inch Network will make use of the 1inch Token in the tokenomics of every new protocol they release.
There are a lot of challenges related to decentralized exchanges and even a small amount of transaction fees saved or a few minutes faster transaction processing time could have a significant impact on the user’s willingness to use the platform.
Below are some of the key 1inch Network insights:
- Heavily audited: 1inch platform and technology have been audited by Scott Bigelow, Certik, Chainsulting, Coinfabrik, Hacken, Haechi, Mixbytes, Slowmist, OpenZappelin and Consensys. It is one of the most audited DeFi technologies existing on the cryptocurrency market. This conveys a message about how serious 1inch is on its technology.
- Future improvements: The audit recommendations also potentially improve the existing technology and can improve the performance of 1inch platform in the upcoming future.
Below we discuss some of the key risks associated with 1inch Network:
- Heavily resource-dependent: Developing new technology like what 1inch does requires a huge amount of resources. The team needs to be able to manage financial risks and mitigate security flaws as well as operational inefficiency. Failure of management could result in unfinished or immature development of the ongoing technological improvement and expansion project that the team has.
- Threat of new technology: Even though 1inch technology has been proven to be one of the best in the decentralized protocols space today, there is a threat that in the future, a new type of technology developed by other projects with another approach will have better performance. If that happens, that could affect the success of the 1inch project.
1inch news and updates
Below we cover some of the latest news and updates surrounding 1inch:
- Trading volume on Ethereum: 1inch has reached more than $60 billion in trading volume on the Ethereum network.
- Planned rewards: 1inch is planning to reward users who stake more than 100k tokens with a 100% refund of the transaction fees spent on the platform.
- NFT launch: 1inch is launching NFT in collaboration with Project Galaxy.
Development fund on offer: 1inch is offering a $3 million development fund to incentivize building on 1inch protocol.
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Above all else, 1inch is a DEX aggregator. 1inch sources the best prices and most efficient swapping routes by scraping multiple decentralized exchanges. 1INCH token is available on several major cryptocurrency exchanges as well on 1inch’s exchange.
As far as the future of 1inch goes, it depends on what the future looks like for decentralized finance. While decentralized exchanges tend to still be costly, sluggish and a bit of a non-event compared to some top dog centralized exchanges, the appetite for them continues to increase. Why? Mostly as a result of the repetitive periods of downtime the centralized exchanges experience due to the volatility in crypto prices.
On the day 1inch Token was launched, 6% (1.5 bln) of its total issuance was released. unlocked. The rest of the tokens will go through gradual unlocking up until 30th December 2024.
All investment is speculative and involves substantial risk and uncertainty. Investors should understand the nature of digital assets including the terms of return and the risk of assets. We encourage investors to fully understand the assets and the risk associated with them prior to making any investment.
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