What is 1inch Network? $1INCH

Jack Goodson -

“Optimize your trades across hundreds of DEXes on multiple networks.”

– 1inch Network

Note: This is part of Nebeus’ new Coin Analysis series, where you can discover the latest crypto coin news.

What is 1inch Network ($1INCH), and how does it work?

The goal of 1inch, a decentralised exchange aggregator, is to offer traders the best rates and lowest fees for their transactions.

What is 1inch Network ($1INCH)?

DEXs are a part of the decentralised finance (DeFi) ecosystem because they allow traders to buy and sell cryptocurrencies without a central authority acting as an intermediary to process orders, store funds, or manage the transaction. By using DEXs, traders can keep control of the money in their wallets without disclosing any personally identifying information.

What is the purpose of the 1inch Network?

Prices and transaction fees can vary widely across decentralised exchanges at any given moment. 1inch collects real-time pricing data from different DEXs, so traders don't have to go to multiple sites to find the best price and can take advantage of trading opportunities without leaving the platform.

1inch gathers data from several well-known exchanges, including:

  • Uniswap
  • SushiSwap
  • 0x
  • Kyber Network
  • and Balancer.

How Does 1inch Network Work?

1inch functions similarly to many well-known travel booking websites. In the same way these sites compile rates from hundreds of airlines, hotels, and travel providers, 1inch does the same for cryptocurrencies by comparing the prices and fees of various decentralised exchanges.

It makes use of three primary protocols:

What is the Aggregation Protocol?

1inch automatically sends trades to the platforms with the best prices and lowest fees. This lets traders compare prices and make trades across the whole DEX landscape from a single platform.

Pathfinder, 1inch's newest update, finds the best trading routes across multiple markets and considers gas costs. If you use Pathfinder, you can split up your trades across multiple DEXs to always get the best possible price.

Imagine a scenario where a 1inch user wants to exchange $100 worth of the DAI stablecoin for Ether. In some cases, 1inch may find that its users can save money by exchanging DAI for another stablecoin like USDC before finally exchanging the USDC for ETH.

1inch may also determine that the best way to convert $30 worth of DAI to ETH is via the 0x exchange, while the best way to convert $70 worth of DAI to ETH is via the Balancer exchange.

Despite the complexity of the discovery and routing processes, 1inch traders still only deal with a single transaction.

What is the Limit Order Protocol?

One of the ways in which 1inch differentiates itself from standard swap orders is through its limit order protocol. In 1inch trading, limit orders allow traders to automatically lock in profits at predetermined prices or protect themselves from losses by placing stop-loss or trailing stop orders at predetermined price levels.

What is the Liquidity Protocol?

Those who deposit their cryptocurrency holdings into 1inch liquidity pools are eligible to receive a passive income stream in the form of 1inch tokens. Liquidity pools are digital currency reserves that can be used as the counter currency in 1inch decentralised exchange trades.

In exchange for providing liquidity, providers are rewarded with "LP tokens," which can be used to stake or convert to other cryptocurrencies.

To combat trade front running, 1inch liquidity protocol incorporates a concept called virtual rates.

So, when a malicious trader, miner, or bot sees a transaction being broadcast to the network, they may attempt to "front run" it by offering a higher fee in exchange for having their own transaction processed ahead of the one they saw.

A change in the fees charged by the liquidity pool brought about by the introduction of virtual rates renders this strategy unprofitable for criminals to employ.

1inch also has a detailed article on the 1inch wallet that is worth checking out if you’re interested in investing in the cryptocurrency.

Who is the Founder of $1INCH?

“One-stop access to decentralised finance.”

  • 1inch Network

Surjey Kunz and Anton Bukov started 1inch in May 2019 at an ETHGlobal hackathon. It is based on the Ethereum blockchain. Kunz is a software engineer who has worked for Porsche, and Bukov is a developer who has contributed to the NEAR Protocol.

The founders of 1inch raised $12 million in a funding round that closed in December 2020, with participation from many high-profile companies like Pantera Capital and ParaFi Capital. Later that month, the team released the 1INCH token, the platform's native cryptocurrency.

To celebrate the launch of the 1inch exchange platform, the 1inch governance token was airdropped to all users who had previously traded on the platform, subject to certain requirements.

What is the $1INCH Token?

The 1INCH token can be held, spent, sent, and staked, and now with Nebeus it can be rented. It serves as the utility and governance token for the 1inch protocol. It is important to note that 1INCH is a multichain token, as it can be used on both Ethereum and BNB Chain via a bridge.

1INCH token holders have the right to vote on and propose changes to the 1inch protocol, including the distribution of platform fees.

The spread – the difference between the quoted price and the executed price of the transaction – is shared among users based on the rules established by the aggregation protocol's governance. Governance of the liquidity protocol sets the rules for each liquidity pool on the platform.

These rules include fees, rewards, and other incentives.

Is 1inch Network a good investment?

The 1INCH token's voting and proposal features could be useful for those interested in influencing the future development of the 1inch protocol.

The 1INCH token may be attractive to investors who think the 1inch team can keep growing its user base, as it may eventually be able to be used for more purposes within the 1inch ecosystem.

Is 1inch Network safe?

To ensure that users' funds in swaps on other DeFi protocols remain safe, 1inch employs cutting-edge security measures. One of its claims to fame is that it serves as "your decentralised financial shield." As an added bonus, it brags about being the most audited project in DeFi.

What makes $1INCH different? Benefits of 1inch Network

There are, without a doubt, a great number of advantages to using 1inch Network as compared to other cryptocurrencies. Three benefits stand out from the rest:

Simpler Way to Find the Best Prices and Low Fees

The 1inch protocol could be useful for traders on decentralised exchanges who want a streamlined process for comparing prices and fees across multiple markets before making a final decision on which one to use.

The 1inch decentralised application (dApp) serves as the DeFi aggregator, providing users with access to the widest range of token swap rates and the deepest pool of liquidity available across a number of different decentralised exchanges (DEXes).

Fast Governance

The 1INCH token has a built-in feature that speeds up the voting process for protocol changes, so more people can take part in the community's decision making and reap its benefits. They plan to move into Phase 3 of their implementation schedule for governance in the early months of 2023.

By giving users more say in how their funds are managed, a DAO can finally function as intended. Decentralisation, ownership, and DAO governance of the 1inch Network protocols and the 1INCH token are the ultimate goals of this phase.

The Non-Profit 1inch Foundation

There is a charitable arm of the company that issues the 1INCH token and promotes the 1inch Network and related community projects. The 1inch Foundation's goal is to encourage philanthropic support for the 1inch Network by providing grants and other capital deployment vehicles to accelerate the growth and reach of the network. These are the areas where The 1inch Foundation is concentrating its efforts:

  • Farming Initiatives
  • Offering Grants
  • Community building

How many 1inch Network ($1INCH) coins are there?

Max Supply: 1,500,000,000

Circulating Supply (28/1/2022): 614,620,085.34

Currently, approximately 40,97% of the total supply is already in circulation.

Note: We gather our information from CoinGecko. The numbers written are correct at the time of writing.

What is the Current Price and Current Market Cap of 1inch Network? (28/11/2022)?

Current Price: $0.5145

Current Market Cap: $316,219,652

Current Market Cap Position: #88

All-Time Low: $0.519281 on June 18th, 2022

All-Time High: $8.65 on October 27th, 2021

Note: We gather our information from CoinGecko. The numbers written are correct at the time of writing.

Conclusion

Ready to get involved with 1inch Network already? Join its thriving community of users, developers, and researchers on one of its channels:

You can sign up for a Nebeus account to buy, rent, and hold your 1inch Network investment.

La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y se puede perder la totalidad del monto invertido.