Everything You Need to Know About 1inch (1INCH)

Decentralization is becoming more and more popular. We’re seeing it in the way we communicate, the way we store data, and the way we exchange value. The 1inch (1INCH) project is one that is leading the charge in this area by providing a decentralized finance exchange aggregator that allows users to get the best price for their trades.
Also, it is considered the decentralized exchanges aggregator that sources liquidity from various DEXes and presents it in a single interface. 1inch aims to make swapping tokens on Ethereum easy and cheap for everyone.
The 1inch (1INCH) project was founded in mid-2019 by Sergej Kunz and Anton Bukov. The 1inch team launched the 1INCH token in December 2019 on the Ethereum mainnet. 1INCH is an ERC20 token that is used to power the 1inch ecosystem.
How Does 1inch (1INCH) Work?
The 1inch protocol is composed of two smart contracts: the 1inch Exchange Router and the 1inch Multi-token Adapter. Ethereum gas fees are used to pay for the execution of these smart contracts. 1INCH tokens are used to pay for the 1inch Multi-token Adapter.
The 1inch Exchange Router
This is a smart contract that is responsible for aggregating liquidity from various DEXes and calculating the best price for a given trade. The 1inch Multi-token Adapter is a smart contract that allows 1inch to support any ERC20 token.
The 1inch exchange router can be used by anyone to create a 1inch-powered decentralized exchange.
This type of smart contract are called “open source” because anyone can view and use the code. 1inch is open source, meaning that anyone can contribute to the 1inch project.
The 1inch Multi-Token Adapter
This contract allows 1inch to support any ERC20 token. It is used by the 1inch Exchange Router to calculate the best prices for trades involving multiple tokens.
For this type of smart contract, 1inch only needs to provide the code for the specific tokens that it wants to support. Although 1inch is open source, the 1inch team decides which tokens to support.
Aside from these two there is liquidity mining programs that 1inch has. 1inch liquidity providers can earn 1INCH tokens by providing liquidity to the 1inch ecosystem.
They also have an affiliate program that allows users to earn 1INCH tokens by referring other users to 1inch.
What Problem Does 1inch (1INCH) Solve?
There are many DEXes available, but each one has its own liquidity pool. This means that users have to pay multiple fees to trade on different DEXes. 1inch solves this problem by aggregating liquidity from various DEXes, so that users only have to pay one fee.
In addition, 1inch allows users to trade directly from their wallets, without having to create an account on a centralized exchange. This makes 1inch more decentralized than other DEXes.
One more thing it solves is the need to search for the best prices on different DEXes. 1inch does this automatically, so that users don’t have to.
Advantages of 1inch (1INCH)
One of the main advantages of 1inch (1INCH) is that it supports multiple DEXes, which means that users can get the best price for their trades. 1inch currently supports the following DEXes: Kyber Network, Bancor, Uniswap, Airswap, OasisDex,Eth2Dai, and DDEX.
1inch (1INCH) also has a number of features that make it unique. One of these is the 1inch Atomic Swap Market, which allows users to swap tokens without having to trust a third party. Another is the 1inch liquidity bootstrap mechanism, which incentivizes users to provide liquidity to the 1inch DEX.
By using 1inch, users can:
- Avoid high fees: 1inch aggregates liquidity from different DEXes, so that users only have to pay one fee.
- Trade directly from their wallets: 1inch allows users to trade directly from their wallets, without having to create an account on a centralized exchange.
- Get the best price: 1inch searches for the best prices on different DEXes and displays them in a single interface.
- Support multiple tokens: 1inch supports any ERC20 token, so that users can trade any token they want.
- Liquidity providers can earn 1INCH tokens: The 1inch liquidity bootstrap mechanism incentivizes users to provide liquidity to the 1inch DEX.
These advantages are the aim to make 1inch the best DEX aggregator available.
Disadvantage of 1inch (1INCH)
Advantages have been listed, but 1inch is not perfect. There are numbers of disadvantages found in this project.
Here is a list of some of the disadvantages you must know:
- Still under development: 1inch is still under development, and there are no guarantees that it will be successful. The 1inch team is constantly working on adding new features and supporting more tokens, but there is no guarantee that 1inch will become the go-to DEX aggregator or decentralized exchange aggregator.
- High transaction fees: 1inch charges a 0.25% fee on all trades. This is higher than the fees charged by some of the DEXes that 1inch supports.
- Limited number of tokens: 1inch only supports ERC20 tokens, so users cannot trade non-ERC20 tokens.
- Liquidity protocol: 1inch uses a liquidity protocol called 0x, which is not as widely used as some of the other protocols.
These disadvantages should not discourage you from using 1inch. 1inch has a lot of potential, and the 1inch team is constantly working to improve the 1inch platform.
How to Use 1inch (1INCH)?
Using 1inch is very simple. Just follow these steps:
- Step 1: Connect your wallet to 1inch. 1inch supports MetaMask, Gnosis Safe, and Ledger hardware wallets.
- Step 2: Choose the tokens you want to trade. 1inch supports any ERC20 token.
- Step 3: Enter the amount of tokens you want to trade.
- Step 4: 1inch will automatically find the best price for your trade and display it in the interface.
- Step 5: Review the details of your trade and confirm it.
There you have it! These are the simple steps you need to follow to use 1inch. Remember that internet connection is important before you can follow this steps.
1inch (1INCH) Roadmap
The 1inch team has a number of plans for the future. Some of these include:
- Adding support for more DEXes: 1inch plans to add support for more DEXes, so that users have even more liquidity to choose from.
- Improving the 1inch interface: 1inch plans to improve the 1inch interface, so that it is even easier to use.
- Adding support for more tokens: 1inch plans to add support for more tokens, so that users can trade any token they want.
The software development kit of audited project 1inch (1INCH) is made cost effective with security in the Solidity programming language for the Ethereum blockchain.
The 1inch team is constantly working on adding new features and improving the 1inch platform. 1inch has a lot of potential, and it is definitely worth keeping an eye on.
1inch(1INCH) Price History
1inch (1INCH) was launched on August 15, 2019, at a price of $0.02. 1inch reached its all-time high on February 8, 2020, at a price of $2.48. 1inch has since declined in price and is currently trading at $0.42.
1inch (1INCH) has a market capitalization of $102 million and a 24-hour trading volume of $9 million. 1inch (1INCH) is available for trading on a number of exchanges, including Binance, Huobi Global, Upbit, and OKEx.
1inch (1INCH) Price Forecast
This is a promising project with a lot of potential. 1inch has a strong team, a working product, and a clear roadmap. 1inch (1INCH) is currently trading at $0.42, and I believe that 1inch (1INCH) has the potential to reach $1 by the end of 2020.
There is a tendency for 1inch (1INCH) to correct after each run. 1inch (1INCH) has already corrected once from its all-time high, and I believe that 1inch (1INCH) will correct again before it starts its next run.
1inch (1INCH)’s Role in DeFi
1inch (1INCH) plays an important role in the DeFi space. 1inch is a DEX aggregator, which means that it brings together the liquidity from a number of different DEXes. This provides users with more liquidity and better prices. 1inch also allows users to trade any ERC20 token, which makes it a very useful platform for users who want to trade a wide variety of tokens. 1inch (1INCH) is an important project, and I believe that it has a bright future ahead.
Examples of the important project of 1inch (1INCH) are already underway as the 1inch team has plans to add support for more DEXes, improve the 1inch interface, and add support for more tokens. 1inch (1INCH) is definitely a project to keep an eye on.
Under the decentralized autonomous organization (DAO), 1inch (1INCH) has a clear roadmap with stages already underway to improve the 1inch platform. 1inch (1INCH)’s role in the DeFi space is important as it provides users with more liquidity and better prices.
Future of 1inch (1INCH)
The future of this is still very promising, but with all the competitors in the market, it will be hard to 1INCH to stay on top for a very long time. I do think 1INCH has potential to grow in the long term, but it might not be as big as some people expect.
With it’s market cap 1INCH is currently the 35th biggest cryptocurrency, but it may struggle to stay in the top 50 for a very long time. But since it has a limit order protocol known as the flexible limit order functionality, 1INCH could become one of the top 10 decentralized exchanges in a few years.
Cryptocurrency exchange are a dime a dozen, but 1INCH has managed to stand out from the crowd. 1INCH network is developing to be one of the most important projects in the DeFi space. 1INCH’s role in the DeFi space is important, and so 1INCH has a bright future ahead.