Review of 1inch (1INCH) cryptocurrency token and 1inch.exchange aggregator DEX

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1inch is an aggregator for decentralized marketplaces. Helps to execute orders of large volumes with low slippage. The protocol collects liquidity from DEX, using smart contract technology for this purpose, splitting one transaction between several exchanges, which gives users the opportunity to optimize their transactions. The project is receiving much approval from Binance CEO Changpeng Zhao, who believes these are the protocols that are fueling the rise of DeFi.

1INCH is an ERC-20 platform governance token that is used only within the ecosystem and allows the community to vote for protocol parameters. On December 25, 2020, Binance exchange opened token trading in 1INCH / BTC and 1INCH / USDT pairs. The Profinvestment.com editorial team offers an overview of the 1INCH platform and its features.

General information

Name1inch
Ticker1INCH
Token typeERC-20
BlockchainEthereum
Total emission1 500 000 000 1INCH
Current issue72 010 409 1INCH
Course1,32 $
Market capitalization94 831 734 $
Official sitehttps://1inch.exchange/#/
Twitterhttps://twitter.com/1inchExchange
Bloghttps://1inch-exchange.medium.com/
Sourcehttps://github.com/1inch-exchange
ExchangesBinance, Uniswap, Huobi, OKEx

1inch price chart (1INCH)

1INCH / USTD price chart on the Binance platform:

Features of trading with 1inch

1inch is a decentralized exchange aggregator that receives liquidity from various popular DEXs. Smart contract technology splits one transaction across multiple exchanges, providing the most profitable and optimized deals. To work with 1inch, you need to connect through an Ethereum wallet (for example, Metamask). To do this, click Connect Wallet in the upper right corner and select the wallet you are using, and then confirm your action in the wallet itself – for example, by entering a password.

When the wallet is connected, your ETH address is displayed at the top of the page. By clicking on it, you can view your transaction history or disconnect the wallet from the platform.

1inch allows you to trade ETH and ERC-20 tokens. If the standard menu does not contain the token you need, then you can import it using the “Add custom token” function

Wallets supported by the platform:

  • MetaMask;
  • all wallets supported by WalletConnect;
  • WalletLink;
  • Ledger;
  • Portis;
  • MyEtherWallet.

In the near future, it is planned to add support for Torus, Formatic, Bitski, Authereum, UniLogin.

Special attention is paid to the safety of working with 1inch, including the safety of funds and transactions. The 1inch smart contract (version 2) has passed five security audits from Chainsulting, Scott Bigelow, Certik, MixBytes and Hacken. In the process – also audits from Coinfabrik, OpenZeppelin, HaechiLabs, Consensys diligence and SlowMist.

1INCH token and its purpose

The 1INCH Management and Utility Token will be used to manage all 1inch network protocols, taking the management capabilities of the DeFi space to the next level. The 1inch Network is creating an innovative “Instant Governance” feature that enables the most efficient and transparent way to vote on certain protocol settings within the Decentralized Autonomous Organization (DAO) model. It is noted that in instant control, the voice of each user matters.

Voting procedure:

  • Each 1INCH token holder can stake their tokens to vote on the protocol parameters.
  • Liquidity providers to pools can participate in pool management using their directly owned LP (liquidity pool) tokens.
  • The weight of each user’s vote is directly proportional to the number of tokens supplied to them.
  • The protocol applies the weighted average of all votes cast linearly throughout the day.
  • Liquidity providers who do not have voting rights automatically delegate their votes to 1INCH token holders.

The 1INCH token will be used in all current and future 1inch Network protocols.

Distribution

All accounts that interacted with the 1inch platform prior to December 24, 2020 received 1INCH tokens if they met one of the following conditions:

  • at least one completed transaction earlier than September 15;
  • at least four operations in total;
  • the total volume of transactions is at least $ 20.

Liquidity providers will also receive their 1INCH tokens based on the first and second phases of the liquidity mining program, which the developers announced earlier in the fall. In addition, a new liquidity extraction program for six pools will be integrated. These pools are not intended for speculative purposes, but for the initial loading of the liquidity protocol, in which the 1INCH token is used as a service connector.

Additionally, 1INCH tokens will be distributed among users supplying liquidity to the pools 1INCH / ETH, 1INCH / DAI, 1INCH / WBTC, 1INCH / USDC, 1INCH / YFI, 1INCH / USDT. Another 0.5% of the total issue will be distributed during the first two weeks of the incentive program among liquidity providers. In the future, the 1INCH holders and community members themselves will determine the distribution programs.

Advantages and disadvantages

Pros: ✅

✅  The ability to optimize trading on the DEX.

✅  Additional earnings for delivering liquidity to the protocol.

✅  Support for a large number of wallets.

✅  Sufficient functionality for asset management: limit orders, farming, liquidity pools.

✅  Decentralized protocol management.

✅  No platform fees for withdrawal.

Minuses ❌

❌  For beginners, the platform can seem daunting.

❌   Interaction is available only with ETH tokens

Conclusion

Liquidity is one of the main problems of decentralized exchanges, and this is compounded by the fact that it is scattered across the many different DEXs that have emerged recently. As a result, bulky transactions are subject to significant slippage. 1inch distributes orders between different exchanges and solves the problem by making trading more optimized, rather than just choosing the best price, as other aggregators do. 1inch also does not charge withdrawal fees except for network fees. It may take a beginner some time to figure out this site, but you should definitely not ignore it.

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