1inch: DEX Aggregator-Project Review

1inch is a decentralized exchange (DEX) and liquidity aggregator that offers the lowest crypto prices across several decentralized platforms. In other words, 1inch allows users to trade their assets across several platforms. This allows them to access a large number of trading options, all on a single web interface. 

 1inch Features

The website interface of 1inch Product is quite illustrative, making it extremely user-friendly. One can use 1inch even if they are not an expert on DEX and digital tokens. In 2020, 1inch released its own token called the 1inch token. The token is a “governance token,” which helps individuals to vote on how the platform should function. The following are the key features of the 1inch Product.

Cost-effective

First and foremost, 1inch is the best platform for crypto trading at affordable rates. When attempting to purchase cryptocurrency, one will notice that the price and fees vary across different DEXes. This is where 1inch comes to the rescue. The algorithm of this platform finds where one can discover crypto at the cheapest rate and what liquidity asset one can use to purchase it.

Liquidity Protocol

1inch’s liquidity pools were first released under the name of Mooniswap. Through this protocol, 1inch allows its users to earn money with the cryptocurrency sitting in their portfolio. Individuals with excess crypto standing in their account can earn money by allowing 1inch to use it to fulfill orders and return it when the investor needs it. The process is similar to earning interest on the money standing in your bank account.

Limited Order Protocol

In the crypto market, the price of a particular cryptocurrency is not final until the completion of the entire transaction. This makes the process of trading in crypto extremely complex and unpredictable. However, with the help of 1inch’s limited order protocol, an individual can place limited orders on crypto. 

Security

1inch is undoubtedly a secured platform created for trading in crypto. It is a legitimate arena for finding cryptocurrency at the best possible price. To ensure the security of its users’ sensitive information, the company carries out regular network protocol audits to ensure that the confidentiality of delicate data is not compromised. In addition to that, the aggregation protocol conducts security checks in order to protect investors from losses.

 Other Features

1inch also provides many other features that make the platform extremely user-friendly and convenient. It allows you to create a wallet or link a preexisting one for trading. The website also provides an “advanced settings” option that helps the investors to customize their preferred gas price range, the exchanges to be routed to, and other such determinants.

1inch Pros and Cons

1inch was founded in 2019 by Sergej Kunz and Anton Bukov during ETHNewYork’s hackathon. Since then, it has raised over $15 billion in funding from companies like Binance Labs and Galaxy Digital.

The genesis of the name “1inch” is a reference to Bruce Lee’s famous knockout punch. Bruce Lee’s punches were known for facing explosive power throughout a single inch. The idea is that just like the renowned martial artist’s iconic punch, 1inch has the power to make the same “shocking” difference in the price of a cryptocurrency.

The following are some pros and cons of 1inch that would help individuals to understand it better.

Pros

Offers Best Prices

Although it is not wise to compare 1inch with DEX in terms of fees charged, it is one of the most cost-effective ways of trading in crypto. Moreover, it allows its users to buy new low-liquidity tokens that are not even listed on other platforms.

Easy-to-use Interface

One of the most striking features of 1inch is its user-friendly interface. This platform is suitable for even those new to the world of crypto. In fact, because of its outstanding web design, some people find it to be more user-friendly than many centralized exchanges.

Low slippage

In simple words, slippage can be defined as the difference between the expected price of an order and the price when the order executes. The combined protocol of 1inch assembles multiple DEXes. It then uses its combined liquidity to offer the lowest possible slippage.

Excellent Track Record in Terms of Security

Amidst the nature of crypto scams, the availability of good security measures holds great value within the crypto community. To begin with, the DeFi industry has a bad reputation because of its exploited protocols. Despite that, 1inch has one of the most secure interfaces regarding DEXes. Ever since its launch in 2019, the security of 1inch has never been compromised.

 Cons

Fiat Not Supported

One of the biggest drawbacks of 1inch is that it does not offer fiat on/off ramps.

Risks involved

Although 1inch has never been hacked, many risks are still involved. One of the most controversial features of the interface is its “infinity unlock .” While this feature saves investors time, it also makes them prone to unsecured transactions. Moreover, there is always a chance of impermanent data loss while using 1inch.

Conclusion

To summarize, 1inch is a cost-effective, user-friendly, and secure platform that allows investors to trade crypto at the lowest prices and gas fees. Thus, it is a valuable tool for individuals trying to buy, sell, or otherwise earn from their crypto stock and gives them a great degree of control.