In December 2020, the world of DeFi witnessed something extraordinary. Leading DEX aggregator, 1Inch Exchange, launched its native 1Inch Token to celebrate its platform's growth. To commemorate this, they rewarded loyal users with free tokens via an airdrop. The event sparked immense excitement among traders, leading to the token's immediate listing on Binance at $2 per token—a spectacular debut. But what exactly is 1Inch, and how does it work?
What Is 1Inch Exchange?
Founded in 2019 by Anton Bukov and Sergej Kunz, 1Inch is a decentralized exchange (DEX) aggregator. Unlike traditional exchanges, DEX platforms enable peer-to-peer crypto transactions without intermediaries. Popular DEXs like Uniswap, Kyber Network, and Oasis each offer varying prices and fee structures for trades. 1Inch simplifies this by scanning multiple platforms to find the most cost-effective swap routes.
How Does It Work?
1Inch employs an advanced algorithm that scours 33+ liquidity protocols to identify optimal trade routes based on:
- Price competitiveness
- Gas fees
- Liquidity depth
- Slippage tolerance
For example, swapping USDT for WBTC might involve splitting the transaction across multiple DEXs to maximize savings.
1Inch Liquidity Protocol (Mooniswap)
In August 2020, 1Inch launched its Automated Market Maker (AMM), Mooniswap—a Uniswap competitor designed to reduce impermanent loss for liquidity providers. By lowering arbitrageur profits, it offers better returns for LPs. Post-token launch, Mooniswap rebranded to 1Inch Liquidity Protocol.
How to Use 1Inch Exchange
Follow these steps to trade on 1Inch:
Connect Your Wallet
- Visit the 1Inch swap page.
- Use MetaMask or Trust Wallet to link your account.
Select Tokens
- Choose the "Pay" (e.g., USDT) and "Receive" (e.g., DAI) tokens.
Approve Token Access
- Opt for "Infinity Unlock" to save on future gas fees.
Execute Swap
- Confirm the transaction via your wallet.
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The 1Inch Token
Launched in December 2020, the 1Inch Token serves as a governance token, allowing holders to vote on platform upgrades. Key details:
- Total Supply: 1.5 billion (released over 4 years).
- Price (March 2021): $5.10.
The project distributed additional 15 million tokens in February 2021 to Uniswap users and other eligible participants.
Where to Buy 1Inch
Purchase the token on:
- Binance
- Uniswap
- Huobi Global
- 1Inch Exchange
FAQ
1. Is 1Inch safe to use?
Yes. As a non-custodial platform, 1Inch doesn’t hold user funds. Transactions occur directly via connected wallets.
2. What makes 1Inch better than Uniswap?
1Inch aggregates liquidity across DEXs, often offering lower fees and better rates than standalone swaps.
3. How do I qualify for future airdrops?
Hold 1Inch tokens or actively trade on supported DEXs.
Conclusion
Since 2019, 1Inch has grown exponentially despite fierce competition. With the DeFi wave still rising, its innovative aggregation model and governance token position it as a major player in crypto’s future.