1inch Is A Universal Access Point To The DEXs Sphere

1inch is a liquidity aggregator from decentralized exchanges. It uses order routing and limit order placement technologies. Liquidity farming is also available to users. The 1inch protocol offers the most favorable prices when exchanging cryptocurrencies. The aggregator analyzes DeFi Swap and dozens of other sources in real-time, selecting the best offers for users. 

Application Routing — What Is It?

1inch applies to the Aggregation Protocol. It can dynamically aggregate bids from various decentralized platforms. The main function of this protocol is to find and offer the best quotes to users. The search takes place on different platforms and blockchains during the exchange of digital assets. 

The aggregator collaborates with different sources of liquidity, namely:

  • Balancer.

  • Curve.

  • Uniswap.

  • PancakeSwap.

  • Bancor.

  • Other popular decentralized exchanges.

Each transaction is controlled by smart contact. This feature keeps users from losing funds. If they are connected to an unreliable source. 1inch uses network commission optimization. This allows it to offer users favorable prices when exchanging cryptocurrencies. The aggregator uses various tools to save users money. 1inch can split an order when it is executed. Liquidity is taken from several pools on different platforms in such a case. 

1inch: Features Of Trading

Aggregator 1inch has a concise and plain interface. Some points remind me of Uniswap. The user needs to first connect the browser wallet. You can do this by selecting the desired network. There is a special button in the web app. You can switch the blockchain with its help. 

The central part of the screen is dedicated to creating an application. The main settings for the order are:

  1. Order type.

  2. Cryptocurrency Parties.

The aggregator offers finer settings additionally. Users can set the following parameters:

  • The size of the network commission;

  • Maximum allowable slippage rate;

  • Partial execution function;

  • Others.

The 1inch aggregator provides users with the ability to create orders. They meet individual requests.

Types Of Available Orders In The 1inch Aggregator

Technical implementation is accompanied by difficulties. Therefore, traditional trading opportunities are most often limited in DeFi applications. A striking example: most protocols offer to exchange cryptocurrency at the current market price. The aggregator 1inch offers limit orders. This is a feature traders observe on centralized exchanges. The 1inch aggregator has a Limit Order Protocol. It is responsible for this feature.

The user fills an order. It is then sent to the decentralized base of the aggregator. The matching with the opposite order is done automatically. These orders can be placed by other users or by the 1inch protocol itself. It can also act as a source of liquidity.

User funds are not reserved. The movement of funds after placing an order to another address accompanies the execution of the order. The buyer also pays the cost of the network commission when the limit order is executed. Only the 1inch protocol does not pay for gas. Thus it can offer users the most favorable prices possible. 

Users can make different orders through the 1inch aggregator, namely:

  • Market;

  • Limit;

  • P2P (direct exchanges between users).

The last option was added very recently in 2022.

Personal Token 1inch: What Is It For?

The aggregator has a native cryptocurrency. It was issued in 202 on the Ethereum network via a crosschain bridge.

The token allows you to participate in a DAO project. Participants can:

  • make suggestions;

  • discuss proposed options;

  • vote in favor of a particular proposal.

Voting takes place on a special forum. The user must lock 1inch tokens in a specific smart contact. This action allows participation in voting. There is speculation that the coin will be used in the operation of the routing protocol. The new tokens are available thanks to steaking.

Holders of the 1inch coin have access to a cashback program. It applies to commissions paid. The amount of the refund is individual. The indicator depends on the amount that is stored in the wallet. The program is available to users of at least 100 tokens. The size of the cashback in this case will be 25%.

Why Do You Need A 1inch Wallet?

The project offers users an application for trading and farming. Additionally, there is work on the development of the wallet. It is designed for the DeFi sphere. The wallet can be used in:

  • 1inch aggregator;

  • Any DeFi applications;

  • Mobile devices.

The wallet can be used for various purposes, namely:

  • store funds;

  • transfer cryptocurrency;

  • make swaps;

  • participate in 1inch token staking;

  • search for decentralized applications.

1inch Wallet offers users the ability to store non-mutually exchangeable tokens, buy crypto-assets with fiat money, and use blockchain games.

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