What is 1inch Network? How does it work?

1Inch Network is one of the first Aggregators in the market and has been operating very effectively recently. The project is also expanding with many new products to grow its business scale.

In this article, let’s explore with AZCoin what makes 1INCH Network stand out and does the project have the potential for investment.

What is 1inch Network?

1Inch is a DEX Aggregator, which combines liquidity from multiple sources.

1Inch was introduced at the ETHGlobal New York hackathon in May 2019 with the launch of Aggregation Protocol v1. Since then, the 1inch has developed additional DeFi tools such as the Liquidity Protocol, Limit Order Protocol, P2P transactions, and 1inch Mobile Wallet.

Currently, 1inch is deployed on most EVM-compatible networks, including Ethereum, BNB Chain, Polygon, Arbitrum, Optimism, Gnosis Chain, Avalanche, and Fantom.

Problems Addressed by 1inch

Trading on decentralized exchanges (DEXs) and automated market makers (AMMs) has become increasingly popular due to advantages over centralized exchanges (CEXs), such as self-custody, enhanced security, and access to a wider range of tokens for optimized market returns.

However, significant drawbacks include limited order books with shallow liquidity, resulting in high slippage on certain AMMs and expensive transaction fees during periods of high gas prices.

Since all orders are broadcast on blockchain, anyone can see a trade before it is executed. This visibility makes trades susceptible to front-running, where bots can pay higher gas fees to have their transactions prioritized.

1inch Network Ecosystem

1inch’s protocol integrates DEXs such as Oasis, Kyber Network, Uniswap, Mooniswap, and Balancer,… This enables users to swap nearly all ERC-20 tokens available in the market.

The native 1INCH token serves as both a governance and utility token.

1inch has also introduced Chi GasToken (Tokenizing Gas Token) to reduce transaction fees on its platform.

The 1inch team has launched Mooniswap, a next-generation AMM with virtual balances that allow liquidity providers to earn profits similar to those earned by arbitrage traders.

In addition to its Aggregation Protocol, 1inch has developed other products such as 1inch Wallet.

The 1inch ecosystem, when fully realized, will be diverse and robust, covering key areas of the DeFi ecosystem including AMMs, DEXs, and lending/borrowing.

Products of 1inch

• 1inch dApp: is a web application that connects to all supported blockchains through smart contracts. It provides access to aggregated liquidity and competitive swap rates on various DEXs, with unique features including finding the best swap prices from multiple liquidity sources.
• The 1inch Aggregation Protocol: also known as 1 inch API v4, is an advanced routing and discovery algorithm that allows asset exchanges at the best market rates. Pathfinder efficiently finds the most effective paths for token swaps, which can be split across different protocols.
• The 1inch Liquidity Protocol (formerly known as Mooniswap): is an AMM designed to provide capital-efficient liquidity positions while protecting users from front-running attacks.
• The 1inch Limit Order Protocol: is a set of smart contracts that enable users to place limit orders and RFQ Orders, which can later be executed on-chain. Both types of orders are off-chain data structures signed using EIP-712. The key features of the protocol are high flexibility and gas efficiency.
• P2P Transactions: 1inch Peer-to-Peer allows two users to engage in non-custodial transactions for any ERC20 token.
• 1inch Mobile Wallet: is a non-custodial cryptocurrency wallet with the best exchange rates available. The wallet is accessible on both Android and iOS operating systems.

1INCH Tokenomics

Basic information about 1INCH token

Essential details regarding the 1INCH token are as follows:

• Name of Token: 1inch
• Symbol: 1INCH
• Operates on: Ethereum blockchain
• Standard: ERC-20
• Address: 0x111111111117dc0aa78b770fa6a738034120c302
• Type of Token: Utility and Governance
• Overall Supply: 1,500,000,000 1INCH
• Current Circulating Supply: 1,500,000,000 1INCH.

1INCH Token Allocation

30% of the total token supply will be allocated to community incentive programs. Another 14.5% will form a development fund to provide grants and incentivize developers to build on the 1inch protocol. The remaining tokens will be distributed to early investors and key contributors.

Token Use Case

The 1Inch token is a utility token used within the 1inch ecosystem for various purposes such as:

• Rewards: 1inch utilizes the 1Inch token as rewards for early Liquidity Providers on Mooniswap.
• Reduce Commission: Users can use 1Inch to reduce transaction fees on the 1inch exchange.

Additionally, in the future, if 1inch introduces a lending protocol, users may use 1Inch as collateral.

Where can I buy and sell 1inch tokens?

Currently, you can trade 1inch on top CEX and DEX exchanges such as Binance, Huobi, Coinbase, 1Inch Exchange, Uniswap, Pancake,… For access to exclusive advantages in your cryptocurrency transactions, take a look at our list of dependable exchanges on our the best crypto exchanges 2024 page.

1inch Network Investors & Partners

Investors

1inch Network has raised $2.8M from investors such as Binance Labs, FTX, Galaxy Capital, Dragonfly Capital, Greenfield One, Libertus Capital, IOSG, LaunchHUB Ventures…

Partners

• Ren Protoco: A project that wraps tokens from one blockchain to another in the form of renTokens.
• Mecuryo: A cross-border payment network providing global access for fast and cheap money transfers.
• Bitquery: One of the leading blockchain data providers with API support for over 30 blockchains.

Conclusion

Through this article, you should have a basic understanding of the 1inch Network to make your own investment decisions. Wishing you success and earning profits from this promising market. Review the Evaluation Process to select potential platforms and projects.