1inch: The Ultimate Guide to Aggregating DEX Liquidity and Maximizing Crypto Trades

1inch: Everything You Need to Know

1inch is a network that connects multiple decentralized exchanges (DEXes) into one unified platform. 1inch exchange allows users to compare and optimize their crypto trades and swaps without going through every exchange separately. The platform is unique because 1inch splits the order and uses APIs to find the best possible route for a token swap. This way, the 1inch protocol aims to offer the best possible rates to users.

An API (application program interface) is a collection of protocols and software-building applications. Providing security and lowering gas fees are among the main objectives of the 1inch network. The platform claims to lower Ethereum gas fees by allowing the usage of Chi GasTokens.

The 1inch network uses multiple protocols, and the synergy of these protocols ensures fast and protected operations in the DeFi space. The core of the network is the 1INCH token, which is an ERC-20 token that powers 1inch’s governance and utility functions.

How does 1inch work?

1inch works by aggregating liquidity from various DEXes and splitting a single trade across multiple exchanges to offer the best rates. The core of this process is the V3 smart contract, which performs runtime verification of transactions. The smart contract uses the Pathfinder algorithm for finding the best paths across multiple markets in less than a second.

The smart contract also protects users from slippage, which is the difference between the expected price and the actual price of a trade. Slippage can occur due to market volatility or low liquidity. To prevent slippage, 1inch allows users to set a maximum slippage limit, which means that the trade will not execute if the price deviates beyond that limit.

Another feature that 1inch offers is limit orders, which allow users to specify a desired price and amount for a trade, and execute it only when the market conditions meet those criteria. Limit orders are useful for traders who want to buy or sell at a specific price point, or who want to avoid paying high gas fees during peak times.

Who is behind 1inch?

1inch was founded by Sergej Kunz and Anton Bukov in 2019. The duo met at a hackathon in New York, where they created the prototype of 1inch as a submission. They won the hackathon and decided to continue developing the project.

Sergej Kunz is the CEO of 1inch. He has over 14 years of experience in software development, including working as a senior developer at Porsche. He is also a white hat hacker who has participated in several bug bounty programs.

Anton Bukov is the CTO of 1inch. He has over 12 years of experience in software engineering, including working as a lead developer at NEKLO LLC. He is also a smart contract security expert who has audited many DeFi projects.

The 1inch team consists of more than 40 members, including developers, designers, marketers, and community managers. The team is distributed across different countries and regions, such as Germany, Russia, Ukraine, Belarus, USA, Canada, Brazil, India, and Singapore.

What are the use cases for 1inch?

1inch has various use cases for different stakeholders in the DeFi space. Some of them are:

For users: Users can benefit from using 1inch by accessing the best rates for their trades across multiple DEXes, saving on gas fees by using Chi GasTokens or limit orders, and earning rewards by staking or providing liquidity to 1inch protocols.

For DEXes: DEXes can benefit from using 1inch by increasing their liquidity and volume through integration with 1inch’s aggregation protocol, attracting more users and exposure through 1inch’s user interface and marketing efforts, and receiving a share of the fees generated by 1inch’s liquidity protocol.

For developers: Developers can benefit from using 1inch by utilizing its API to build their own applications or integrations with other DeFi protocols, receiving grants and support from 1inch’s grant program to foster innovation and growth in the DeFi space, and contributing to 1inch’s open-source codebase and governance process.