Exchange 1INCH

1inch is a decentralized cryptocurrency exchange aggregator and automated market maker (AMM) that operates on the Ethereum blockchain and other blockchains like Binance Smart Chain and Polygon (formerly Matic). It is designed to help users find the best available trading prices for various cryptocurrencies across multiple decentralized exchanges (DEXs).

1inch works by splitting a user's order into smaller parts and executing them on different DEXs to achieve the most favorable rates. This is known as "aggregating" liquidity. The platform also provides liquidity pool management tools, enabling users to stake their crypto assets and earn rewards by providing liquidity to various decentralized markets.

The project was founded by Anton Bukov and Sergej Kunz in 2019 and has since grown to become a popular DeFi (Decentralized Finance) tool in the cryptocurrency space. It has its native utility token called 1INCH, which is used for various purposes within the platform, such as governance and staking for rewards.

The aggregator was founded to address some of the inefficiencies and challenges associated with trading cryptocurrencies on decentralized exchanges (DEXs). When it was created in 2019 by Anton Bukov and Sergej Kunz, the decentralized exchange landscape was fragmented, and traders often had to manually navigate various DEXs to find the best prices for their trades. This process was time-consuming and could result in suboptimal trading outcomes.

The founders of 1inch recognized that there was a need for a solution that could aggregate liquidity from multiple DEXs to provide users with the best possible trading prices. This would help traders achieve better rates and improve the overall trading experience in the decentralized finance (DeFi) space.

1inch functions both as a DEX aggregator and an automated market maker (AMM). As a DEX aggregator, it searches various DEXs for the best trading rates and routes users' orders to achieve optimal prices. As an AMM, it provides liquidity to these DEXs, enabling users to swap tokens and participate in liquidity provision for yield.

The 1inch platform relies on smart contract technology to execute trades, ensuring that users retain control over their funds and trades occur securely on the blockchain. Over time, 1inch expanded beyond the Ethereum blockchain and integrated with other blockchains like Binance Smart Chain and Polygon to provide its services to a broader user base.

The project has fostered a strong community and remains open-source, allowing developers to contribute to its development and integrate its services into their own projects.

In December 2020, 1inch successfully secured $12 million in Series A funding, marking a significant milestone for the project. This funding round was spearheaded by Pantera Capital, a prominent venture capital firm in the blockchain and crypto space. Other notable participants in this round included ParaFi Capital, Blockchain Capital, Nima Capital, and Spartan Group. The financing mechanism employed during this round was a SAFT (simple agreement for future tokens) sale, which allowed investors to commit capital with the expectation of receiving tokens at a later date.

Fast forward to December 2021, 1inch continued its impressive growth trajectory by closing a substantial Series B funding round, amassing a total of $175 million in capital. This round was led by Amber Group, a well-regarded player in the cryptocurrency and digital asset management sector. What set this round apart was the diverse group of nearly 50 investors who participated. Notable contributors included Jane Street, VanEck, Fenbushi Capital, Alameda Research, Celsius, Nexo, Tribe Capital, and the Gemini Frontier Fund.

These successful funding rounds not only demonstrated the continued investor confidence in 1inch but also provided the project with substantial financial resources to further its development and expand its services in the decentralized finance (DeFi) space.

1inch, like many decentralized platforms, employs a variety of security measures to ensure the safety of user funds and transactions. The smart contracts used by 1inch undergo rigorous security audits conducted by reputable blockchain security firms. These audits help identify vulnerabilities and potential issues in the code. Once identified, these issues are typically addressed and resolved to enhance the overall security of the platform.

1inch is a non-custodial platform, meaning it does not take custody of user funds. Users retain control of their assets at all times. This reduces the risk associated with centralized exchanges, where funds are held by a central entity and are susceptible to hacks or mismanagement.

Some DeFi protocols, liquidity pools, and yield farming strategies integrated with 1inch offer insurance coverage. Users can opt for protocols that provide insurance to protect against potential losses due to smart contract vulnerabilities.

The DeFi community plays a vital role in identifying and reporting potential security vulnerabilities. Many security concerns are discovered and disclosed by security researchers and community members, which can lead to prompt fixes.

1inch has experienced significant growth and has established partnerships with various projects and DeFi platforms in the cryptocurrency space, making it a widely recognized and used tool for DeFi enthusiasts. For example, 1inch integrated with Kyber Network to access Kyber's liquidity and provide users with more trading options and competitive rates. Furthermore, as one of the most popular decentralized exchanges, 1inch had integration with Uniswap, allowing users to access Uniswap liquidity through the 1inch platform.

1inch is also integrated with Aave, allowing users to access Aave's lending and borrowing services directly through the 1inch platform. Similar to Aave, 1inch is integrated with Compound, another prominent DeFi lending and borrowing platform, enabling users to interact with Compound's smart contracts through 1inch.

In the latter part of 2022, a new feature called Fusion mode was unveiled, revolutionizing the way users can swap tokens across different decentralized exchanges (DEXes). This innovative mode allows users to perform token exchanges without incurring any network fees, all while securing the most advantageous rates.

Furthermore, within the realm of Fusion mode, experienced traders executing users' orders employ cutting-edge strategies to safeguard these transactions against the adverse effects of Miner Extractable Value (MEV). This means that users can carry out their trades with peace of mind, as concerns related to MEV are effectively addressed and managed by the platform

1inch introduced its native utility token, 1INCH, which has several use cases within the platform. It can be staked for rewards, used for governance decisions, and more. The total supply of the 1INCH token is 1,500,000,000 1INCH, and as of November 1, 2023, the circulating supply is 1,043,800,860 1INCH.

Average Fees on 1inch

The exact fees for using 1inch can change based on the underlying blockchain network (e.g., Ethereum, Binance Smart Chain, or others) and the specific actions users take.

The cost of gas fees can fluctuate significantly based on network demand. During periods of high congestion, such as when there are many users interacting with DeFi platforms, gas fees can be relatively high. Users will need to pay gas fees when executing trades, adding liquidity to pools, or performing any other transaction on the platform.

When trading on 1inch, users can set a slippage tolerance level to allow for price fluctuations during their trade execution. This is not a fee, but it's an important parameter that can affect the final cost of a trade. Higher slippage tolerance can lead to more favorable trade execution but might also result in slightly higher costs.

Depending on the specific features and services used on 1inch, there might be fees denominated in the 1INCH token. These fees can be used for various purposes within the platform, including governance and staking.

1inch Token Wallets 

The 1INCH token can be stored in numerous crypto wallets, including popular choices like MetaMask, MyEtherWallet, Ledger Nano S/X, Trezor, trust Wallet, Exodus, Atomic Wallet, Coinbase, etc.