In an era of rapid development of cryptocurrency and decentralized finance (DeFi), 1inch Fusion has become a leader in the industry with its unique intent-based architecture. Since its launch in December 2022, 1inch Fusion has not only changed the way tokens are exchanged, but also provided users with an efficient and convenient trading experience. This article will take an in-depth look at how 1inch Fusion works, its main benefits, and its importance in the DeFi ecosystem.
Core advantages of 1inch Fusion
1inch Fusion offers a series of significant advantages that make it stand out in the highly competitive DeFi market:
No need to pay gas fees: Users do not need to hold the network’s native tokens or pay gas fees when exchanging tokens. This innovation makes transactions more convenient and reduces users’ transaction costs.
Preferential token exchange prices: Compared with other competitors, 1inch Fusion is able to save users approximately 9.5% in transaction fees. This advantage has attracted a large number of users to choose 1inch Fusion for token exchange.
MEV Protection: In DeFi transactions, MEV (Miner Extractable Value) bots are a significant threat, especially for large transactions. 1inch Fusion aims to eliminate the risk of front-running and mezzanine attacks through its built-in MEV protection mechanism, providing users with a safe trading environment.
unlimited liquidity
1inch Fusion’s liquidity comes from the entire crypto market, including centralized exchanges (CEX), ensuring that each token has sufficient resources for users to trade. This wide range of liquidity provides users with more choices and a better trading experience.
Fast swap execution: Users’ transactions on 1inch Fusion can be executed almost instantly, ensuring that users can complete transactions quickly.
Low price impact: Through the partial filling function, 1inch Fusion minimizes the price impact during the transaction process, allowing users to complete transactions at better prices.
The probability of order expiration is low
The risk of order expiration due to gas price fluctuations is almost eliminated, allowing users to trade with greater confidence.
How 1inch Fusion works: At the heart of 1inch Fusion lies its intent-based architecture. After users set their trading intentions, market professionals perform multi-step operations based on specific criteria to achieve efficient token exchange. This method not only improves transaction efficiency, but also provides users with a better control experience.
Intent and Smart Execution: Fusion is built on 1inch’s aggregation and limit order protocols. Users can set preset rates and duration limits, and orders are completed by verified parsers, reducing the burden on users. Through the Dutch auction model, Fusion’s fill rate decreases over time, ensuring a better order fill rate.
Flexible trading setup
Users can choose the execution speed of transactions according to their own needs. Compared with traditional swaps or limit orders, Fusion provides greater flexibility and efficiency. Resolvers connect liquidity from multiple sources to ensure sufficient liquidity for swap transactions.
Fusion exchange user guide: 1inch Fusion’s user experience is very user-friendly, and users can complete transactions in just a few simple steps:
Enter the swap amount: In the 1inch dApp, fill in the "You paid" and "You received" fields.
Select mode: It is recommended to select "Auto" mode for a worry-free experience.
Execute the exchange: If necessary, click Allow and Exchange and approve the transaction.
Fusion settings default
Users can choose different presets based on their needs to better suit their exchange preferences:
Automatic: Automatically adjust rates and maturities based on market conditions and swap amounts.
Fast: Set up a 3-minute auction for faster execution, for users who prioritize speed.
Fair: Extended auction time to 6 minutes with a focus on achieving better exchange rates.
Customization: Allows users to set auction time and rate limits according to needs, suitable for experienced users.
Integration of 1inch Fusion API
1inch Fusion API provides efficient exchange solutions for Web3 platforms, projects, wallets and bots. The API is available on the 1inch developer portal and ensures sub-400ms response times, making it one of the fastest APIs on the market.
Suitable for CEX and wallets: The 1inch Fusion API is particularly suitable for centralized exchanges and wallets, able to provide customers with additional services such as depositing and withdrawing rare coins and various DeFi tokens. By providing virtually unlimited liquidity, the 1inch Fusion API enables traditional financial institutions to seamlessly integrate with DeFi.
in conclusion
1inch Fusion reshapes the DeFi trading experience through its unique intent-based architecture and multiple innovative features. Advantages such as no gas fees, favorable token exchange prices, MEV protection, and unlimited liquidity make 1inch Fusion an ideal choice for users to exchange tokens. As the DeFi market continues to develop, 1inch Fusion will continue to lead industry innovation and provide users with a more efficient and secure trading experience.