1inch is a non-custodial decentralized exchange (DEX) aggregator and liquidity provider that displays the prices and liquidity available on multiple exchanges helping you find the best rates and lowest fees for your trades.
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Read on to learn everything you need to know about the 1inch project and the 1INCH token.
What Is 1inch
The 1inch Network is a non-custodial DEX aggregator designed to offer the best rates for crypto investors by discovering the most efficient swapping routes from leading DEX providers. The protocol uses the Pathfinder algorithm to find you the best trading path across different markets with over 50+ liquidity sources on Ethereum, 20+ liquidity sources on Binance Smart Chain, and 7+ liquidity sources on Polygon.
The 1inch Aggregation Protocol facilitates cost-efficient and secure swap transactions across multiple liquidity sources. The 1inch Liquidity Protocol is a next-generation Automated Market Maker that protects users from front-running attacks and offers attractive opportunities to liquidity providers.
The 1inch DEX aggregator surpassed $40B in overall volume in less than two years. Currently, 1inch exchange sources liquidity over three blockchains: Ethereum, Binance Smart Chain networks, and Polygon, with 78, 41, and 28 separate pools, respectively, across those blockchains.
The 1inch mechanism relies on multiple protocols to function, and they all work together to ensure a smooth and efficient DeFi space. The three protocols are :
> Aggregation Protocol
> Liquidity Protocol
> Limit Order Protocol
- Aggregation Protocol: The protocol sources liquidity from various exchanges and splits a single trade across multiple exchanges to offer the best rates. The core of this protocol is the V3 smart contract, which performs runtime verification of transactions. The aggregation protocol uses the Pathfinder algorithm to find the best paths across multiple markets in less than a second.
- Liquidity Protocol: This is an Automated Market Maker (AMM) that allows users to trade their assets using liquidity pools automatically. The liquidity protocol provides liquidity to the pools and enables users to participate in liquidity mining programs to earn rewards.
- Limit Order Protocol: This protocol facilitates an innovative and flexible limit order functionality. It features no fees. The protocol offers dynamic pricing based on demand and supply, conditional execution of orders, multichain support, and fulfills requests for quotations. Furthermore, the protocol implements stop-loss orders, trailing stop orders, and auctions, making the protocol very flexible.
The 1inch DAO (Decentralized Autonomous Organization) governs the 1inch network parameters, enabling 1INCH holders to vote for key protocol parameters and collect governance rewards. 1INCH is the platform's native instant governance token that serves as both a utility token and a governance token. Holders of the 1INCH token, no matter the amount, can use their voting power to decide on various parameters of the 1inch network, including the governance reward, the swap fee for the liquidity protocol, the price impact fee, etc. It's also possible to earn by staking 1INCH tokens and supplying liquidity to the 1inch liquidity pools.
The 1inch team has raised approximately 190m from various venture capital firms to improve the 1inch network.
1inch Founders
1inch was co-founded by Anton Rukov and Sergej Kunz during a New York City hackathon. They first launched their own decentralized exchange (DEX) named Mooniswap (a version of UniSwap) before switching to their own liquidity pool and creating the 1INCH DEX aggregator. Anton Rukov is a Russian software entrepreneur and developer who spent five years at the Academy of Federal Security Service of Russia. He graduated as a specialist engineer and developed a TCP/IP OS stack equivalent and a C-style language compiler. Rukov built a career as a C++ and iOS software developer across different fields, including machine learning, until he became a blockchain developer for BitClave in 2017. Before founding 1inch network, Rukov was chief blockchain engineer at MultiToken and senior smart contract engineer at Near protocol.
Sergej Kunz is a software developer whose love for the PC started at an early age. By age 17, he had taught himself how to code and started landing freelance gigs coding websites. His next milestone was writing a text message aggregation system that allowed users to send text messages globally at the best rates. Kunz subsequently worked as a senior developer at Commerce Connector and for big companies like Bosch, Siemens, and Porsche. His crypto journey started in 2012 with crypto mining. Kunz met Rukov via his crypto-inspired Youtube channel.
How Does 1inch Work
1inch helps users find the decentralized exchange with the best deal for their intended transaction. Its Pathfinder algorithm finds the best possible path for a token swap using all the different exchanges and liquidity protocols that can facilitate this trade.
For example, let's suppose you want to buy some Wrapped Bitcoin (a synthetic version of Bitcoin) using Ethereum on a decentralized exchange. The prices and fees vary on different DEXs. 1inch network will help you find the decentralized exchange with the best deal for Wrapped Bitcoin.
As a decentralized exchange (DEX) aggregator that sources liquidity from various DEXs, it offers users the best token swap rates across exchanges. The system accommodates the traders' needs and finds the best exchange rate across many platforms.
How to Buy 1INCH
1INCH is a popular token available on many major trading platforms, such as:
- Binance
- KuCoin
- Huobi Global
- FTX
- OKEx
- Coinbase
Buying 1INCH Token
You can buy 1INCH tokens with your credit or debit card and Bitcoin from your cryptocurrency wallet following the easy steps described below:
Step #1: Create an Account
Once you’ve selected a reliable cryptocurrency exchange, you can move on to creating your account to buy 1INCH. The requirements differ depending on the platform you pick. Personal information such as your name, contact number, e-mail address, home address, social security number, and a copy of your driver's license, passport, or government-issued ID will be required for most transactions. You might also need to identify yourself through a webcam or smartphone in compliance with Know Your Customer (KYC) rules if you plan to deposit fiat money from your bank account to purchase the 1INCH token.
After verifying your ID, you may want to enable the two-factor authentication system (2FA) to add an extra layer of security to your account.
Step #2: Fund Your Account
After setting up your account, the next step would involve depositing funds to purchase 1INCH and other cryptocurrencies. You can use your bank account, debit/credit card, or crypto coins from a different crypto wallet. The payment method you use will be determined by the platform, location, and preferences.
Linking your debit card to your crypto account is advantageous as it lets you make instant or recurring purchases, but be aware that it may involve an additional fee. In the case of a local bank account, transfers are generally free, but you may want to double-check with the platform you are using.
1INCH can also be traded for other cryptocurrencies like Bitcoin, Ethereum, or stablecoins. The trading pairs vary between exchanges, so you will need to search for 1INCH on the spot market to select a pair from the list of available currencies.
Step #3: Buy 1INCH
Once your account is funded, you can now buy 1INCH. Most exchanges offer an "instant buy" option that lets you purchase 1INCH easily for a set price. An alternative way involves opening a trade in the spot market and setting your own price. Although the "instant buy" method is relatively straightforward, it tends to be more expensive than the spot market option. It's also good to check the market conditions and recent performance to see if it's the appropriate time to buy 1INCH before going ahead with your purchase.
Step #4: Get a Wallet
After buying your 1INCH coins, you can either keep them on the exchange or store them in a personal crypto wallet. We highly recommend creating a private wallet with your own set of keys and complete ownership over your crypto assets. Depending on your investing preferences, you might choose between software and hardware wallets, the latter being a more secure choice.
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