What is 1inch ? A Quick Overview

Written by Sushanth Kumar Reddy Kura | Published 2 months ago | 5 min read

   


1inch is an advanced Dex (Decentralized Exchange) aggregator and AMM (Automated Market Maker) Protocol. It uses an algorithm that aggregates 33 different liquidity protocols in order to discover the most efficient swap for your buy/sell order. 1inch tries to bring out the best price, liquidity, Slippage, etc when we place an order using it. 

1inch launched their own AMM protocol called mooniswap. exchange. It operates just like any other AMM protocol like Uniswap, Sushiswap, etc. 1inch is built on the Ethereum network. It uses smart contracts to source liquidity from a number of different decentralized exchanges like Uniswap, Kyber, Bancor, etc. Recently 1inch also started supporting the Binance Smart Chain ecosystem.


1inch in their version 2 upgrade released a feature called Path Finder. Using Path Finder the transactions can be split into smaller transactions in order to find the best route. Using 1inch exchange you can add a lot of different features to your swap order like a limit order, market order, set your slippage tolerance, gas price, and also limit the sources from where it is pulling the liquidity from.

1inch has its own token with the ticker $1inch. There is a 1.5 billion total supply of 1inch tokens. These will be unlocked over a 4 year period to numerous stakeholders. $1inch basically serves as the governance token for the 1inch exchange. It gives token holders the right to vote on important decisions regarding the 1inch ecosystem. 1inch team has also done two big airdrops for the people who used their platform and also who used and encouraged other decentralized exchanges like uniswap.


Recently 1inch has been listed on India’s Largest Cryptocurrency exchange, WazirX. On this Occasion, WazirX and 1inch are doing a massive giveaway of over $12000 (~ 10 Lakh rupees). 

The giveaway starts on 26th March 2021 and ends on 31st March 2021. Learn more about this here.

Grand 1inch Giveway

Wallets supported by 1inch Exchange :


1inch supports the following ERC20 Wallets

  1. Metamask.
  2. Trust wallet.
  3. Wallet Connect.
  4. Authereum.
  5. Unilogin.
  6. Torus.
  7. Formatic.
  8. Wallet Link.
  9. Portis
  10. Bitski.
  11. edger

1inch on Binance Smartchain Ecosystem also supports Metamask (Configured) and Binance Wallet.


Some of the important features of 1inch exchange

1. 1inch exchange is decentralized and hence it does not hold any custody of the user’s assets. The entire funds are present with the user itself in their respective ERC20 wallets.

2. As 1inch exchange is an aggregator it offers the liquidity and the rates of multiple decentralized exchanges on a single Dashboard.

3. In order to use the 1inch exchange, there is no need to do any KYC. User need not provide any information to 1inch exchange. The customer can remain anonymous and can make trades inside the exchange. All you need to do is connect your wallet to the 1inch exchange and start trading.

4. While making trades on the 1inch exchange, users can also make use of some additional features and set a limit order, market order, adjust slippage tolerance, adjust the gas fees, etc.

5. 1inch launched CHI gas token last year. Using this token users can pay the gas fees/transaction fees on 1inch exchange. If a consumer chooses to pay the gas tokens using the CHI gas tokens, the transaction costs will reduce by 42 %. 


Conclusion

1inch exchange is undoubtedly one of the best Dex protocol that we have seen in recent times. The aggregator works very well and provides the most efficient swaps possible. 1inch has also made it easy for the users to get into the DeFi space. I personally use 1inch a lot and will continue to do so.

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