Everything You Need to Know about 1inch

1inch is a DEX aggregator built on Ethereum. It is a type of liquidity agreement specifically for customers to automatically find the most favorable and most convenient transaction route by aggregating all other decentralized trading platforms.

Due to the different structures of various decentralized exchanges such as Uniswap, Aave, etc., the selling price of the same virtual currency is slightly different on different exchanges.

Therefore, 1inch will also split transactions into different decentralized trading platforms according to different situations to achieve the purpose of significantly reducing transaction slippage and saving costs.

All transactions supported by 1inch: Uniswap, Kyber, Aave, Curve.fi, Airswap, mStable, Balancer, dForce Swap, 0x API, and it's own Mooniswap, etc.

1inch Liquidity Agreement V2 version

The main function of 1inch Liquidity Agreement V2 is that price affects fees.

This is a fee that increases with price slippage and slippage to ensure that liquidity providers and 1INCH token pledgers obtain higher returns through volatility.

According to the data of dune analytics, it can be seen that 1inch's transaction volume has surged after the end of 2020, mainly due to the arrival of the main updated version of its platform "V2". 1inch's V2 platform adds some more complex transactions to the original basis to keep prices low, such as rescheduling funds dedicated to loan collateral for the decentralized loan agreement Aave and Compound.

Although the monthly new/old users ratio has been reduced, it remains at greater than 1, implying that the number of new users of 1Inch is increasing at a gradually decreasing rate. But I believe that if V3 appears in the near future, by incorporating more DeFi protocols, upgrading algorithms, and making transactions cheaper. It will attract greater liquidity,

1inch token

The platform launched its crypto token 1INCH on Christmas 2020. The total circulation is 1.5 billion pieces.

The main function of 1INCH tokens is governance, such as modifying transaction fees, recommendation rewards, and so on.

There are two types of governance: pool governance and factory governance.

Users can use it to vote on the operation of the 1inch platform and achieve instant governance.

As of April 30, 2021, according to Coinmarketcap, the value of the token is $5.45 and the market value is $850,539,232.54. Of the total supply of 1.5 billion, there are 156,671,623 1-inch tokens in circulation.

1inch is not only an aggregator but also has its own exchange Mooniswap. Therefore, governance can be divided into liquidity agreement governance and aggregation agreement governance.

1inch's algorithm uses all the different exchanges and liquidity protocols that can facilitate this type of transaction and finds the cheapest way to conduct a transaction.