What is 1inch?
1inchFounded by Sergej Kunz and Anton Bukov at the ETHNewYork hackathon event in 2019, the main function is the DEX aggregation protocol.
With the goal of providing the best price to users while taking into account the cost of transaction fees, the project aggregator solution connects to four different platforms, including Ether, Coin Energy Chain, and Polygon and Optimism ETH scalability solutions, combining a total of more than 120 sources of liquidity (e.g. DEX, lending agreements, and AMM).
In addition to optimizing prices, 1inch's aggregator protocol minimizes slippage (the difference between expected and actual execution prices) by pooling liquidity from different sources connected to the platform.
At the same time, the aggregator uses smart contracts to run validation of trade execution to ensure the safety of users' funds, even when interacting with insecure sources of liquidity. In addition, the protocol minimizes the risk of front-running, a common practice in which malicious parties use information from pending transactions to cause financial loss to traders.
In addition to aggregator protocols, 1inch's rapidly growing ecosystem features the following DeFi solutions and platform components.
- 1inch Liquidity Protocol: Formerly known as Mooniswap, 1inch's Liquidity Protocol provides AMM functionality to projects, which users can use to swap tokens (natively on the platform) and to generate passive income by pledging tokens for interest (Yield Farming).
- 1inch Limit Order Protocol: Simply put, the Limit Order Protocol solution introduces an upgraded trading experience similar to the services offered by centralized cryptocurrency exchanges, but in a decentralized manner. In addition to market orders, users can use the protocol to place limit, stop and trailing stop orders between Ether, Coin Smartchain and Polygon with zero transaction fees.
- 1inch DAO: a decentralized autonomous organization with a user-friendly interface that users can use to participate in community governance and use their native 1INCH coins to vote on matters concerning the future of the project.
- 1inch Foundation: A non-profit organization dedicated to promoting the development of the project ecosystem and pursuing incentive activities and contributions through different methods, such as distributing governance rewards and developer grants, and launching a collateralized token interest program.
- 1inch Wallet: A user-friendly, non-custodial DeFi wallet that users can use to store tokens, connect to decentralized financial applications, and 1inch's protocols.
What is 1INCH Tokens, and what are their main functions?
The 1INCH token is the project's native utility and governance cryptocurrency and is available on the Ether and Coinan smartchains.
The total supply of 1INCH tokens is 1.5 billion, with slightly more than 180 million 1INCH tokens currently in circulation, and the remaining assets will be gradually unlocked and released to the marketplace over a four-year period until December 30, 2024.
The main features of the cryptocurrency include.
- Efficient routing solution by acting as a connector for the 1INCH mobility protocol
- Participate in governance decisions by pledging 1INCH (and receive rewards in exchange)
- Distribution of revenue farming incentives to liquidity providers
The program initially airdropped a total supply of 1INCH of 6% to existing users and allocated the rest of the tokens to airdrop airdrops, yield farming, grants, various community rewards, and other uses.
Now, let's take a quick review of 1INCH's performance over the past few months.
Although the project has been around since 2019, it only launches its native token on December 25, 2020.
However, shortly after its launch 1INCH entered a sharp bull market in which it soared from $1.16 on January 1 to $6.06 on February 5, and by May 8 the cryptocurrency's value further increased to a high of $7.58.
As the cryptocurrency market crashed between May and June, hitting a bottom of $1.68 on July 20, 1INCH has been recovering its losses since then and is currently trading at $3.34 (as of September 16). In total, the digital asset has a return on investment of $1,88% so far in 2021.
1inch What are the most important project updates?
Since its launch in 2019, 1inch has seen quite a bit of development in its little over two-year history.
In addition to its initial DEX aggregator solution, it has launched liquidity and limit order protocols, as well as integrating its products and services with Coin Smartchain, Polygon and Optimism, in addition to Ether.
In addition to the above, we have summarized 1inch of the most important project updates as follows:
- Launch of the 1INCH token in December 2020
- Community Governance Framework for the June 2021 Upgrade Project
- Add over-the-counter (OTC) swap functionality to 1inch dApp (June 2021)
- 3 million grant program launched in July 2021 to fund and incentivize network and community development, as well as research and analysis
- Since September 1, 2021, the project has launched a new campaign in which it allocated 10 million 1INCH tokens (currently worth nearly $33.5 million) to compensate users for the cost of Ether transaction fees for pledging the protocol's native tokens through its dApp
In AAX Cryptocurrency Exchange Trading 1INCH
1inch is a DeFi project designed to provide a viable solution to the important problems of increased slippage, illiquid markets and high frontier risk.
As a result, 1inch has become one of the leading aggregator protocols in the decentralized financial industry with its own AMM, collateralized token interest collection solution, and limit order solution that provides advanced trading capabilities to its users.
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