1inch (1INCH) Research

1inch (1INCH) Research Details

1inch (1INCH) 1inch

INTRODUCTION

1inch is a DEX aggregator that enables users to optimize transactions across hundreds of DEXs on various blockchains such as Ethereum, Binance Chain, Polygon, Optimism, Gnosis, Avalanche, Arbitrum, and others. It quickly evaluates hundreds of quotes and fees across several DEXs to get the cheapest rates for consumers. It reroutes the clients' trades and assures that they receive the best price.

The 1inch aggregation protocol employs the Pathfinder method to separate the best prices from over 70 liquidity sources on Ethereum, over 40 on BSC, over 20 on Polygon, over 40 on Avalanche, and other sources. The DEXs Uniswap, ox, Balancer, and 1inch's proprietary liquidity protocol, Mooniswap, are all used in the protocol. 


HISTORY AND FOUNDER

1inch was created at the ETHGlobal hackathon in May 2019 at New York. However, the project's origins are deeper.

Sergej Kunz and Anton Bukov, two Russian programmers, first met in 2017. The two were interested in security, smart contracts, and blockchain technology. Bukov appeared on Kunz's Russian-language CryptoManiacs YouTube channel frequently and later became a co-host.

Kunz and Bukov performed smart-contract security assessments for Russian enterprises and began participating in crypto hackathons across the world for fun.

The platform has subsequently collected around $15 million in investment and is currently managed by the 1inch Network Foundation, a non-profit corporation, that issued the 1INCH token in December 2020.


REASON TO BUILD THE PROJECT

Kunz and Bukov, both keen DeFi enthusiasts, began by experimenting with arbitrage bots and developing the first medium viable product during the ETHNewYork hackathon in 2019.

They didn't win any substantial awards at the 2019 ETHGlobal competition, but they did return from New York with the code for a functional DEX aggregator. They continued to refine the code, and in July 2020 CryptoManiacs changed their name to 1inch Limited.


BASE OF PROJECT

The project is made up of the following primary components that work together:

·        1inch Aggregation Protocol: Provides consumers with competitive rates while facilitating secure and cost-effective swap transactions across numerous liquidity sources. This protocol uses the pathfinder algorithm to identify the most beneficial routes between various marketplaces on Ethereum, BSC, Polygon, Optimism, and Arbitrum.

·        1inch Liquidity Protocol: A next-generation AMM that protects customers from front-running threats while also providing significant possibilities to liquidity providers.

·        1inch Limit Order Protocol: Allows for flexible limit order swap functionality in DeFi. Dynamic pricing, conditional orders, power different implementations, including stop-loss and trailing stop orders as well as auctions are all elements of the protocol.


USE CASE

The native ERC-20 utility and governance token for the protocol is 1INCH. The following are the implementations for 1 INCH:

·        Liquidity mining: Users can add funds to the liquidity pools to get incentives for mining liquidity and a share of the 1inch DEX transaction costs.

 ·        Staking: Users can stake tokens on the farming program pools of 1inch, and in exchange, they will earn staking rewards in 1INCH or other tokens.

 ·        Governance: 1INCH holders can take part in the governance of the 1inch DAO and earn governance incentives.

 

MAJOR NEWS AND EVENTS

DATE

NEWS/EVENTS

IMPACT

19/10/2021

eToro expands its crypto offerings with ATOM, GRT, CRV, and 1INCH

+53% Increase

18/05/2021

China closes financial, cryptocurrency, and payment trading institutions

-56% Decrease

27/01/2021

1INCH price rallies as its monthly DEX volume nears $6 billion

+84% Increase


CONCLUSION

Numerous elements of 1INCH include a cutting-edge governance mechanism intended to change the way decentralised networks are operated. With a market value of over $380 million, 1inch Network's ERC-20 token gives adequate liquidity and provides a profitable as well as cost-efficient service to traders and liquidity providers.


DISCLAIMER

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto products are currently unregulated and subject to market risk. Please seek independent financial advice or do your own research before investing.