1inch overview

History of 1inch

1inch was founded by Sergej Kunz and Anton Bukov, two experienced developers with a background in software engineering and blockchain technology. The project was born during the ETHGlobal hackathon in May 2019, where the duo developed a prototype for a DEX aggregator that would later become 1inch. The platform officially launched in August 2020, rapidly gaining traction in the DeFi space due to its efficient trade routing and user-friendly interface.

Key milestones

Since its inception, 1inch has achieved several important milestones. In December 2020, the platform launched its governance token, 1INCH, which allows holders to participate in the decision-making process of the protocol. Additionally, the team has continuously expanded the platform's capabilities, integrating with numerous DEXs and launching features like limit orders and liquidity mining programs.

How 1inch works

1inch operates by aggregating liquidity from various DEXs to offer users the best possible trading rates. The platform employs a unique algorithm to split orders across multiple exchanges, ensuring optimal execution and minimizing slippage. This approach allows traders to benefit from the most competitive prices and reduced transaction costs.

Order splitting and routing

One of the standout features of 1inch is its ability to split orders among different DEXs. When a user initiates a trade, the platform's algorithm analyzes available liquidity pools and determines the best way to execute the order. By distributing the trade across multiple platforms, 1inch can achieve better prices than trading on a single exchange.

Limit orders

1inch offers a limit order functionality, allowing users to set specific price levels for their trades. Unlike market orders, which are executed at the current market rate, limit orders give users more control over their trades by executing only when the specified price is reached. This feature is particularly useful for traders looking to capitalize on specific market conditions.

The 1INCH token

The 1INCH token is an integral part of the 1inch ecosystem. It serves as both a utility and governance token, giving holders a say in the platform's development and future direction.

Governance

1INCH token holders can participate in the governance of the 1inch network. Through a decentralized autonomous organization (DAO), users can propose and vote on various protocol changes, including fee structures, new feature integrations, and other important updates. This decentralized governance model ensures that the community has a significant voice in the platform's evolution.

Utility

Apart from governance, the 1INCH token has several utility functions within the 1inch ecosystem. It can be used to pay for transaction fees, participate in liquidity mining programs, and earn rewards by staking. These functionalities drive demand for the token and incentivize user engagement with the platform.

Security and audits

Security is a top priority for 1inch, and the platform has undergone multiple audits to ensure the safety of user funds. The team collaborates with leading cybersecurity firms to regularly review and enhance the protocol's security measures. This commitment to security has helped build trust among users and solidify 1inch's reputation as a reliable DEX aggregator.