1inch is a leading decentralized exchange (DEX) aggregator designed to optimize token swaps by sourcing liquidity from multiple platforms. Its goal is to streamline DeFi trading while minimizing costs and maximizing efficiency for users.
Why Liquidity Matters in DeFi
Decentralized finance thrives on liquidity—the availability of assets for trading. Deep liquidity ensures smoother swaps and fairer prices, but DeFi’s fragmented nature means users often need to manually compare rates across DEXes like Uniswap, SushiSwap, or Curve.
1inch solves this by:
- Aggregating liquidity from 20+ DEXes and blockchains.
- Using algorithms to find the best swap routes.
- Reducing gas fees and risks like front-running.
👉 Discover how 1inch outperforms traditional DEXes
The Evolution of 1inch
Founders and Funding
- Sergej Kunz (ex-Porsche cybersecurity engineer) and Anton Bukov (NEAR Protocol developer) launched 1inch at ETHGlobal 2019.
- Raised $190M+ from Binance Labs, Pantera Capital, and others.
- Expanded to BNB Chain, Polygon, Fantom, and zkSync Era.
Governance
The 1INCH token powers a DAO for decentralized decision-making, with tokens allocated to:
- Investors (33%)
- Community incentives (30%)
- Core team (22.5%)
How 1inch Works: Key Features
1. Pathfinder Algorithm
Splits swaps across DEXes to optimize prices. For example, a $1,000 ETH trade might route:
- $500 via Uniswap
- $300 via Curve
- $200 via SushiSwap
2. Fusion Mode
- Eliminates gas fees via Dutch auctions.
- Resolvers (market makers) compete to process swaps, paying fees in 1INCH.
3. Additional Tools
- Limit orders: Set custom swap prices.
- RabbitHole: Anti-front-running tech.
The 1INCH Token: Utility and Governance
- Staking: Resolvers stake 1INCH to participate in Fusion.
- Voting: DAO members shape protocol upgrades.
- Supply: Capped at 1.5B tokens (fully distributed by 2024).
FAQs
1. Is 1inch safer than using a single DEX?
Yes—it reduces slippage and scans for the most secure routes.
2. How does Fusion save on gas fees?
Resolvers cover fees, incentivized by arbitrage opportunities.
3. Can I trade on 1inch without 1INCH tokens?
Yes, but token holders access governance and staking rewards.
4. Which blockchains support 1inch?
Ethereum, Polygon, BNB Chain, Avalanche, and more.
Final Thoughts
1inch redefines DeFi trading by combining liquidity aggregation, gas efficiency, and decentralized governance. Whether you’re a casual swapper or a power user, its tools offer unmatched flexibility.
Ready to optimize your trades? Dive into 1inch’s ecosystem today.