A major component of the DeFi world is decentralized exchanges (DEXs). DEXs offer a great deal of opportunity for crypto traders and investors. DEXs give you the opportunity to earn passive income from your idle crypto assets. Since decentralized exchanges aren’t governed by a third party, information such as their order books and their inflow/outflow of funds remains private.
Although most decentralized exchanges such as SushiSwap, Raydium and Uniswap are reliable, no two DEXs have the same fee structure or sell cryptocurrencies at the same price. For instance, the price of Bitcoin on Uniswap is not always the same as it is on SushiSwap. In fact, this trading concept of price differences has its own name: arbitrage trading.
As a result of price differences, finding the best exchange rates for your crypto tokens can be challenging, since you are required to compare rates manually across DEXs. Choosing the wrong DEX could cost you in potential returns as well.
Imagine if a platform offered the best possible price for your tokens based on data gathered from top DEXs? In this article, we’ll explore the 1inch Network – a DeFi aggregation platform designed to tackle this issue.
What Is 1inch Network?
Sergej Kunz and Anton Bukov, who both have strong backgrounds in smart contract auditing, founded 1inch in August 2020. The 1inch Network was actually created and presented during the ETHNYC hackathon in 2019, before its official launch. At its core, 1inch is a DEX aggregator offering the best available crypto prices across major DEXs.
As of now, 1inch facilitates the aggregation of transactions across five blockchains: Ethereum, Polygon, Binance Smart Chain, Arbitrum, and Optimism. In less than three years, since 1inch’s inception, over 1.6 million users have placed trades totalling $11.7 million on their platform.
What Is 1INCH?
1INCH is the native token of the 1inch Network. It was launched by the 1inch Foundation — a nongovernmental organization (NGO) that governs the entire 1inch ecosystem. 1INCH is a governance and utility token. As a holder of this token, you get to be involved in the future direction of the 1inch platform. At the end of 2020, the company distributed many 1INCH tokens in a highly successful airdrop.
How 1inch Works
To find the best possible exchange rate for your crypto tokens, 1inch Network has adopted an innovative protocol that automatically splits trades placed by users. Subsequently, the tokens are swapped in parts at the best possible rates on different DEXs.
In a matter of seconds, the 1inch algorithm enables the scanning of multiple liquidity pools to find the one that provides the best returns. The 1inch proprietary protocol combines multiple arbitrage bots with complex algorithms to find and match trades.
With the 1inch aggregation protocol, you can swap your tokens on five different networks at the lowest possible prices. The protocol also burns gas tokens inside the transactions to make them cheaper than those of any other protocol.
Key Features of 1inch Network
Below are three of the key features of the 1inch Network.
Routing
Using an innovative method called routing, the 1inch platform is deployed via an algorithm known as Pathfinder. This algorithm parses all the possible options within the liquidity pool and autonomously routes a client’s trades through the most cost-effective path.
Multi Path Swaps
The 1inch Network is capable of performing multi path swaps, occasionally swapping the source token to its destination over multiple paths to get an even cheaper rate. This feature can’t be found on any other DeFi aggregation protocol.
Unique Governance
The 1inch community manages the network with a unique process known as Instant Governance. 1INCH holders have the right to vote for key protocol parameters, and can earn multiple rewards by doing so. It’s easy for community members to participate and benefit from the process. Unlike with many other governance protocols, voting periods on the 1inch Network aren’t lengthy.
1INCH Tokenomics
Note: figures below are accurate as of this writing, and are approximated up to two decimal places.
Total Supply — 1.5 billion 1INCH tokens
Circulating SupplyCirculating supply is the number of cryptocurrencies or tokens that are publicly available and circulating in the crypto… — 438.4 million
Market CapitalizationThe market capitalization (or market cap) of a cryptocurrency is a measurement of its market value. In other words, it… — $1.01 billion
Total Value Locked (TVL) — $32.6 million
24-Hour Trading Volume — $164 million
Price — $2.30 per 1INCH
Pros and Cons of 1inch Network
| Pros | Cons |
| The 1inch Network has strong backing in the industry. Notable investors behind this project include Binance Labs, Pantera Capital and Galaxy Digital. | The platform is designed for individuals experienced in the fields of crypto and DeFi. Therefore, novice traders might find navigating the platform challenging. |
| Compared to other platforms, the 1inch Network is cheaper to use, with network fees charged only for withdrawal of cryptocurrencies. For crypto swaps, transaction fees (e.g., gas fees) may be charged, depending on the DEX used. The fees aren’t charged by the 1inch Network itself. | The platform requires users to hold cryptos to access their services. Also, 1inch offers fewer deposit options than other platforms in the market. |
| So far, the 1inch Network has neither been hacked nor faced any security breaches. | |
| The platform offers high liquidity levels to its users, and orders are filled faster than with many other DeFi aggregators. |
Is 1inch Network (1INCH) a Good Investment?
The value of the 1INCH token has appreciated by over 800% since its inception in December 2020, with the token registering its current ATH of $7.87 in May 2021. Although the price of 1INCH has mostly been on the decline over the past month, experts believe it has great potential. According to analysts at CoinMarketCap, the token could surpass its current ATHAll-time-high or ATH means the highest ever price of an asset. This term has been used in traditional financial markets,… to reach $10 over the short term.
How to Buy 1INCH Coin?
You can purchase 1INCH on many notable cryptocurrency exchanges. One of the fastest and easiest ways to obtain this token is by using the Bybit exchange. Simply follow the steps below.
Step 1: If you have an account with Bybit, please skip to Step 2. If you’re a new user, follow the simple sign-up procedure. Then visit the official Bybit website and click Register in the top right-hand corner. Provide a few details requested (such as your email address) and create a secure password. Once done, click Continue and verify your account using the code sent to your registered email address.
Step 2: The 1INCH token is paired with the most popular stablecoin — USDT — on the Bybit exchange. You can acquire USDT in your Bybit wallet by transferring your existing USDT from another wallet or exchange, or by purchasing USDT with Bybit using various crypto tokens. If you want to buy USDT using fiat money, visit the Buy Crypto page, enter the number of USDT tokens you want to buy, and complete the transaction using a method such as credit or debit card.
Step 3: Once the USDT tokens are reflected in your Bybit wallet, visit the Spot Market. Click on the drop-down menu and search for 1INCH. Enter the number of 1INCH tokens you want to acquire, and click Buy 1INCH. You can do this by placing a limit, market or conditional order. Once your order is filled, your tokens will be transferred to your Bybit wallet.
Source: Bybit | 1INCH/USDT
Step 4: Bybit offers custodial wallet services for its users. When you store 1INCH tokens in your exchange wallet, you’re essentially using the exchange’s hot storage. Alternatively, you can transfer your 1INCH tokens to a cold wallet. We recommend storing your tokens in a hardware wallet for maximum security.
Is 1INCH Worth Investing in 2022?
The 1inch Network’s protocol offers a great crypto experience and adds considerable value for users. Apart from finding the best possible exchange rates for your tokens, the platform also contributes to the DeFi space by accelerating transparency and decentralization. By offering rewards through an innovative governance model, the 1inch Network is a pioneer in reshaping the way decentralized protocols are managed.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
