Introduction
Decentralized exchanges (DEXs) revolutionized crypto trading by eliminating intermediaries, allowing users to trade directly from their wallets. However, the proliferation of platforms like Uniswap, SushiSwap, and PancakeSwap fragmented liquidity, creating price discrepancies across exchanges and complicating the search for optimal trade execution.
Enter 1inch Network—a DeFi aggregation protocol that scans multiple DEXs simultaneously to deliver the best possible rates with minimized slippage and gas fees.
What Is 1inch Network?
1inch Network is an Ethereum-based DeFi platform that aggregates liquidity from leading decentralized exchanges. Its proprietary Pathfinder algorithm splits trades across multiple DEXs to optimize:
- Price execution: Dynamically routes orders to capitalize on the deepest liquidity pools.
- Gas efficiency: Reduces fees by up to 40% by selecting cost-effective pathways.
- Transaction success rates: Uses dynamic fill adjustments to mitigate failed trades due to slippage.
Key Statistics:
- 150B+ total trading volume (Ethereum network).
- 1M+ active users.
- Supports 8+ blockchains, including BNB Chain and Polygon.
Core Features
1. Pathfinder Algorithm
👉 Discover how Pathfinder saves you 40% on gas fees
This real-time routing engine evaluates:
- Price impact across 300+ liquidity sources.
- Gas costs relative to trade size.
- Slippage tolerance thresholds.
Users toggle between "Maximum Return" and "Minimum Gas" modes for customized strategies.
2. CHI Gas Token
An innovative solution to Ethereum’s volatile gas fees:
- Mint CHI tokens when gas prices are low.
- Burn them to offset costs during network congestion.
- Note: CHI is a utility token—not 1inch’s native governance token.
3. Security Advantages
- Non-custodial: Funds stay wallet-bound; no exchange risk.
- Transparent: All routes are auditable on-chain.
Market Performance (Q2 2022)
Despite crypto’s "bear market," 1inch achieved:
| Metric | Value | Growth (QoQ) |
|---|---|---|
| Total Volume | $47B | +8% |
| Protocol Revenue | $6.7M | 103% |
| Top Revenue Days | May 11–12 | UST collapse |
Trend Insight:
Volume spikes coincided with major market events (e.g., UST depeg, stETH depegging), showcasing 1inch’s role as a crisis liquidity tool.
FAQs
Q1: How does 1inch compare to Uniswap?
A: While Uniswap operates a single DEX, 1inch aggregates multiple DEXs (including Uniswap) to find better rates. Think of it as "meta-trading."
Q2: Is 1inch safe to use?
A: Yes. Unlike centralized exchanges, 1inch never holds your assets—you retain full control via your private keys.
Q3: What chains support 1inch?
A: Ethereum, BNB Chain, Polygon, Avalanche, and 4 others. 👉 See full list here
Conclusion
1inch Network has emerged as the top DEX aggregator by solving DeFi’s liquidity fragmentation problem. With its gas-saving tech, multi-chain reach, and crisis-resilient volume, 1inch is poised to onboard the next wave of decentralized traders. As the protocol expands, expect even deeper integrations with emerging DeFi ecosystems.