What is 1INCH? 1INCH is a token managed by the 1inch network and is designed to support the aggregation trading platform of decentralized exchanges (DEX). As a multi-functional decentralized aggregator (DEX Aggregator), 1inch can automatically and instantly integrate information from more than 180 decentralized exchanges to provide users with the best trading prices. This efficient transaction method allows users to obtain lower fees and higher profits when conducting cryptocurrency transactions.
1INCH’s development history
Anton Bukov and Sergej Kunz, the founders of 1inch, participated in the Ethereum Global New York City Hackathon in 2019 and built a minimum viable product (MVP) for a decentralized aggregation transaction during the competition. This achievement lays the foundation for the future development of the 1inch community. By the end of 2021, the number of users in the 1inch community has reached one million, and the total number of transactions completed on Ethereum has reached $134 billion.
Latest movements in 1INCH token: As of this writing, the price of 1INCH token is $0.50, with a gain of -0.27% in the last 24 hours. In a recent community vote, 68.78% of members opposed the proposal to establish an NFT market due to issues with the proposal’s format and implementation plan. However, another proposal called 1IP-21 received 71.44% support, which includes the creation of an NFT aggregation market and other related services for the community, with a budget of approximately US$387,000.
1INCH functions and functions
The main function of 1inch is to automatically search for the best trading path through its aggregation protocol and provide users with the best trading price of cryptocurrency in the shortest time. 1inch supports multiple public chains, including Ethereum, BNB Smart Chain, Polygon, Avalanche, etc., which gives it considerable competitive advantages in the field of decentralized finance (DeFi).
1inch ecosystem: 1inch’s ecosystem is not limited to DEX aggregation, but also includes the following important components:
1inch Liquidity Protocol: Formerly known as Mooniswap, it provides AMM functionality, allowing users to exchange tokens and stake to earn interest.
1inch limit order protocol: This service allows users to perform operations such as price limit, stop loss and trailing stop loss in a decentralized environment, improving the trading experience.
1inch DAO: A decentralized autonomous organization that allows users to participate in governance and decide the future of the project by holding 1INCH tokens.
1inch Foundation: A non-profit organization dedicated to promoting the project ecosystem, promoting contributions through various incentives.
1inch Wallet: A user-friendly, non-custodial DeFi wallet that facilitates users to store tokens and connect to decentralized financial applications.
New trading model——Fusion
In December 2022, 1inch Network launched a new transaction model-Fusion model. This model allows users to place orders at a specified price and time without paying network fees, thereby improving the cost-effectiveness and security of transactions. Fusion mode combines 1inch’s limit order protocol and aggregation protocol to provide users with more flexible trading options.
In Fusion mode, users can choose from the following three trading methods:
Fast: Users are willing to accept suboptimal transaction prices to complete transactions quickly.
Fair: Users are willing to wait for a period of time to get a better transaction price.
Auction: Users are willing to wait for the longest expiry date to get the best transaction price, especially suitable for large transactions.
Purpose of 1INCH Token
The 1INCH token was launched in December 2020 and plays an important role in multiple protocols. Its main uses include:
Utilities: Serves as a connector to the 1inch liquidity protocol to enable efficient routing transactions.
Governance: used to manage various protocols of the 1inch network, and holders can participate in governance decisions.
Multi-chain support: Currently, 1INCH token supports cross-chain operations between Ethereum and BNB chains.
in conclusion
As a multi-functional decentralized trading platform, 1INCH provides users with efficient and convenient trading options with its innovative aggregation technology and ecosystem. With the development of the NFT market and the launch of new trading models, the future prospects of 1INCH are worth looking forward to. For investors, understanding the functionality of the 1INCH token and its place in the DeFi ecosystem will help make more informed investment decisions.