1inch is a decentralized exchange (DEX) aggregator and a broader DeFi ecosystem designed to help users find the best prices and lowest fees when trading cryptocurrencies across multiple decentralized exchanges. Instead of manually comparing prices and liquidity on different DEXs, 1inch automatically scans and splits trades across various platforms to secure optimal rates for users, minimizing slippage and maximizing returns.
Key Features
- DEX Aggregation: 1inch sources liquidity from hundreds of DEXs-including Uniswap, SushiSwap, 0x, Kyber Network, and Balancer-across multiple blockchains such as Ethereum, BNB Chain, Polygon, Arbitrum, Avalanche, and more. Its proprietary Pathfinder algorithm identifies the most efficient trading routes, sometimes splitting a single trade across several exchanges to achieve the best outcome.
- Limit Orders and Advanced Trading: The 1inch Limit Order Protocol allows users to set dynamic pricing, conditional orders, stop-loss, trailing stop, and participate in auctions, offering flexibility beyond simple swaps.
- Liquidity Protocol: 1inch operates its own automated market maker (AMM), providing capital-efficient liquidity pools and protection against front-running attacks.
- Multichain Wallet: The 1inch Wallet is a non-custodial, multichain mobile wallet that enables secure storage, staking, and seamless interaction with DeFi protocols.
- Governance and Utility Token (1INCH): The 1INCH token is an ERC-20 token serving both governance and utility roles. Holders can participate in the 1inch DAO, voting on key protocol parameters and future development. The token is also used for staking and incentivizing liquidity providers.
How It Works
1inch operates much like a travel aggregator, but for crypto trades. When a user wants to swap tokens, 1inch checks real-time prices and fees across supported DEXs and executes the trade (or splits it into multiple trades) to ensure the best possible rate, factoring in gas costs and liquidity depth. This approach saves users time and money, especially in the fast-moving DeFi landscape.
Background
1inch was founded in 2019 by Sergej Kunz and Anton Bukov during an ETHGlobal hackathon. Since then, it has grown into a major DeFi player, processing over $150 billion in volume and serving millions of users. The project is governed by the 1inch DAO and supported by the non-profit 1inch Foundation, which fosters ecosystem growth and community initiatives.
Summary Table
| Feature | Description |
|---|---|
| Core Function | DEX aggregator for optimal crypto trading |
| Key Algorithms | Pathfinder for route optimization |
| Supported Chains | Ethereum, BNB Chain, Polygon, Arbitrum, Avalanche, and more |
| Token | 1INCH (ERC-20, governance + utility) |
| Additional Tools | Limit order protocol, liquidity pools, multichain wallet |
| Governance | Decentralized (DAO), token holders vote on protocol changes |
In essence, 1inch streamlines DeFi trading by aggregating liquidity and prices across the decentralized landscape, empowering users to trade efficiently, securely, and at the best available rates.