A comprehensive guide to the 1inch Network
1inch Network is a DEX aggregator that scours decentralised exchanges for the most profitable liquidity provider platforms. It provides users access to 116 sources on the Ethereum ecosystem, the Binance Smart Chain, and the Polygon Network.
The aggregation protocol employs various algorithms to perform its function, providing users with access to liquidity sources worth more than $30 billion.
Sergej Kunz and Anton Bukov, two Russian developers, created 1inch Network. They have expertise in smart contract auditing. Kunz and Bukov, both avid DeFi enthusiasts, began experimenting with arbitrage bots, creating the first medium viable product during the ETHNewYork hackathon in 2019.
Since then, the platform has raised approximately $15 million in funding and is governed by the 1inch Network Foundation, a non-profit organisation that launched the 1inch token in December 2020.
How does the exchange work?
The 1inch Network protocol splits orders across multiple DEXs to find the best market price. The protocol employs a combination of arbitrage bots and other algorithms to accomplish what would require several pairs of hands working at breakneck speed from humans. Users can swipe tokens on three networks at the lowest prices thanks to 1inch Network.
What is a 1inch token?
1inch is an ERC-20 token designed to serve as the 1inch ecosystem's governance and utility token. The token is available on various exchanges, including Binance, Coinbase, Uniswap, KuCoin, Gemini, and PancakeSwap.
The following are the primary applications for the 1inch token:
• Utility: The token can be used as a connector on the Liquidity Protocol to aid in efficient token swap routing.
• Governance: All governance votes on the 1inch Network require the token.
• Multi-chain: The token is accessible via a bridge on the Ethereum and BSC networks.
How to trade on 1 inch?
Connect your wallet Go to 1inch.io and click the "Connect wallet" button in the top right corner. Select your wallet in the pop-up window (Metamask), and click the "Connect" button. Your Ethereum address will be visible at the top of the page once the wallet is connected. You can always copy the address, disconnect the wallet, and check your transaction history by clicking on it.
Basic settings In the dropdown windows, select the coin you have and want. You can also choose between 'Maximum return' and 'Lowest gas cost'. If you select the 'Maximum return' option, the algorithm will use complex swap routes to ensure you get the best rates.
You can also select the 'Lowest gas cost' option. In that case, the pathfinder algorithm will determine the most cost-effective option in terms of gas. This option is useful for small trades where you don't want to pay high fees, such as converting 10 USDT to WETH. Small transactions optimise fewer liquidity sources; thus, the option with the lowest gas cost will most likely deliver the lowest price.
- Swap the coin Click on the "swap" button. And you get the coin you want at the lowest price.
Benefits of using 1inch exchange
The primary benefits of using the exchange are as follows:
- User-friendly interface
- No additional transaction fees: The exchange does not charge any additional fees.
- Low swapping charges: Users can choose between different exchanges and actively select the best prices and gas fees.
- The platform is safe and secure for transactions.
- Favourable crypto rates: The Pathfinder feature lets users quickly find the best rates for cryptocurrency exchanges.
- Increase liquidity: As a DEX aggregator, the exchange has access to over 50 DEXs with significant liquidity.
1inch includes a slew of features, including an innovative governance model that aims to change the way decentralised networks are managed. With a market capitalisation of approximately $500 million, 1inch Network's ERC-20 token provides sufficient liquidity and provides traders and liquidity providers with a profitable and cost-efficient service.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.