What is 1inch (1INCH)? Your ultimate guide
1inch is a DEX, allowing users to transact tokens without the need for a third party
Launched in 2020, the cryptocurrency 1INCH is an Ethereum-based token that powers the 1inch Network, a decentralised exchange. As part of the growing DeFi market, 1inch surged throughout the first half of 2021. So what is 1INCH? And how does it work?
What is 1inch (1INCH)?
With the aim of providing the “best rates by discovering the most efficient swapping routes across all leading DEXes”, the decentralised exchange 1inch Network allows users to transact tokens without the involvement of a third-party intermediary.
Founded by by Russian developers Sergej Kunz and Anton Bukov during a hackathon, 1inch collates and aggregates token prices across a range of decentralised exchanges to seek out the best deals for customers. This allows users to get a better deal than if they used an individual exchange.
The 1inch aggregation protocol uses the Pathfinder algorithm to find best prices from more than 60 liquidity sources on Ethereum, more than 30 on Binance and more than 30 on liquidity sources on Polygon, Optimistic Ethereum and Arbitrum.
According to its website, the protocol has more than 900,000 users and has completed more than 6.4 million trades so far.
In addition, 1inch has completed two successful rounds of funding, raising $2.8m (£2.1m) in August 2020 and a further $12m in December 2020.
How does 1inch work?
The 1inch Limit Order product claims to give users flexible limit swap opportunities with features including dynamic pricing and extra RFQ (request for quote) support. The 1inch Network says it gives heightened security and protection to users because of the level of auditing it undertakes. The network’s smart contracts are audited by a range of auditing companies, including SlowMist and CoinFabrik. The 1inch Aggregation Protocol integrates security checks during every transaction to help secure users against losses.
Another feature of the system is 1inch Wallet, a multichain mobile platform enabling users to securely store, stake and exchange tokens.
What is 1INCH coin used for?
Launched in December 2020, 1INCH is the native token of the 1inch protocol. All wallets that had previously engaged with the 1inch dApp, as well as certain liquidity providers, automatically received tokens if they met specific criteria.
The 1INCH cryptocurency has several functions. First and foremost, it allows users to vote on the future of the system as well as on the parameters of new products launched. Liquidity provers can vote on optimal pool configuration parameters via tokens they have staked. Users can also vote to change 1inch’s parameters. The amount of weight your vote holds depends on how many 1INCH tokens have been staked.
It is available on exchanges including Binance and CoinBase, and the 1INCH cryptocurrency has a total supply of 1.5 billion coins, with a total circulating supply of 180.4 million. The 1INCH coin has a market cap of $644.63m as of 1 December 2021.
The 1INCH coin has performed well throughout 2021. Prices surged in the beginning half of the year, hitting $7.51 on 8 May. Despite falling, in succeeding months the 1INCH cryptocurrency hit a high of of $6.52 on 27 October.
Prices have since dwindled, losing more than 20% in the past 30 days and more than 10% in the past week.
The current price of 1INCH stands at $3.50.
1INCH has a total supply of 1.5 billion coins and a total circulating supply of 180.4 million.
The 1inch Network was founded by Sergej Kunz and Anton Bukov during a hackathon in 2019.
1inch claims to be very secure, because 1inch smart contracts are audited by a range of auditing companies, including SlowMist and CoinFabrik. The 1inch Aggregation Protocol integrates security checks during every transaction to help secure users against losses.