THE MOST EFFICIENT DEFI AGGREGATOR
Access the most liquidity, lowest slippage and best exchange rates across Ethereum, Binance Smart Chain and Polygon.
What is 1inch?
1inch exchange is a hackathon project which was presented at ETHNewYork in 2019. The project was created and developed by Sergej Kunz (co-founder & CEO) and Anton Bukov (co-founder & CTO).
Later, the service significantly improved and became a full-fledged enterprise.
1inch exchange is a DEX aggregator that executes a swap of tokens at the best price in one single transaction. It is a common place that a core problem of all DEXes (decentralized exchanges) is lack of liquidity due to the fact that DEXes are a relatively new concept. First of all, 1inch DEX aggregator is addressing the liquidity problem thus facilitating mass adoption. The optimizing algorithm splits up the trade across different exchanges. This allows you to have the most efficient way to exercise a transaction. 1inch protocol sources liquidity from a broad range of DEXes which truly makes it a single entry point to DeFi (decentralised finance) trading and creates an ecosystem experience.
For the record, 1inch protocol is not fully on-chain. It has integrations into the centralized off-chain 0x and AirSwap order books. But if you have a wish to examine and use the source code, you better look at 1Split - an open source version of 1inch.
Undoubtedly, that Chainlink has the largest collection of secure market data in the entire DeFi. 1inch is proud to have integrated some feeds from Chainlink Decentralized Price Reference Data for ETH pairs and ETH/USD pair into its UI. As a result, the end user can be sure about the accuracy of displayed/used token prices and its US dollar equivalents.
You may wonder about translation fees, gas and general economics of 1inch. The price efficiency is achieved not only by splitting up the trading value between multiple liquidity sources but also, by not charging any ontop fees. 1inch utilizes the GST2 version of GasToken. If you are familiar with the GasToken concept, you understand that 1inch buys (mints) GST2 at the low price and sells (burns) this gas when the price is high. 1inch’s gas reserve is used to facilitate swaps on the platform. For burning GST2, 1inch obtains a refund from the GasToken contract when the whole bank contract (that is created during minting) gets deleted. This a bit delayed-in-time refund allows 1inch to discount your transaction cost by up to 42%.
The “upgraded version” of GST2, an own 1inch invention, is CHI Gastoken. The CHI Gastoken is an ERC20 standard token that is meant to be used on 1inch exchange to pay transaction costs. The idea is similar to the GasToken token concept but with some improvements. CHI is pegged to gas price on Ethereum. When the gas price is low, the CHI price is low as well, and vice versa. CHI like GasToken is a tokenized gas on Ethereum with the only difference that CHI is used on 1inch (yet!) while GST2 has a wide spread across the network.
Buying (minting) CHI saves you 1% in comparison with minting GST2, the saving while selling (burning) of the token is 10%. In all the rest functions, CHI is similar to GST2.
Often raised question: what is the 1inch business model? What is left to 1inch? Well, first of all your valuable positive feedback and some affiliates from the DEXes 1inch provides trading volume to.
"To spend VC money is not our goal, we wish to be self-sustainable" - Sergej Kunz.
It is an incredible honor and pleasure to contribute to building DeFi solutions that, we are sure, will be enjoyed and appreciated by our users. Cheers!
LEADING DEX AGGREGATOR
1inch offers the best rates by discovering the most efficient swapping routes across all leading DEXes.