The 1inch Network: A Unity of Decentralized Protocols
An ecosystem for decentralized protocols that allows you to engage with multiple potentially beneficial, efficient, and secure operations within the DeFi space.
By Sergej Kunz, Co-Founder, 1inch
Updated December 27, 2023 • 1 min read
The 1inch Network is a collection of composable decentralized financial instruments that are inherently interrelated. The 1inch Network can be used by a variety of crypto and decentralized finance (DeFi) users, enabling basic and advanced features that allow anyone to access and discover the world of DeFi.
Why use the 1inch Network?
All the services that 1inch has to offer are provided through one single, intuitive interface, giving users the ability to see how different DeFI products interact with each other in a clear and efficient manner. There are five distinct yet interconnected components to the 1inch DEX Network:
1inch Aggregation Protocol
The 1inch Aggregation Protocol is the most used feature on the 1inch Network where users are able to find and execute efficient transactions across decentralized exchanges (DEXs).
1inch Crypto Liquidity Protocol
The 1inch Liquidity Protocol is a next-generation automated market maker (AMM) that protects users from front-running attacks and offers capital efficiency to liquidity providers while ensuring traders can buy and sell ERC-20 tokens without being overly affected by slippage. By solving the issue of front-running bots, the 1inch Liquidity Protocol has positioned itself as one of the most secure protocols in the Ethereum ecosystem.
The 1inch DAO (Decentralized Autonomous Organization) allows members of the 1inch crypto community (1INCH token stakers) to vote on key protocol parameters and changes, ensuring a truly decentralized governance system.
1inch Labs is an integral part of the long-term development of the 1inch Network. It is comprised of a decentralized group of software developers that work on a wide range of open-source protocols governed by users through the aforementioned 1inch DAO.
The 1inch Foundation is a non-profit organization that issued the 1INCH token and is dedicated to fostering the 1inch Network and initiatives that benefit the network’s community. The 1inch Foundation incentivizes contributions through grants and other capital deployment vehicles.
The 1INCH token
Liquidity on the 1inch DEX Network AMM is highly improved by the 1INCH token itself. Users can take advantage of this token to earn liquidity providers’ mining rewards by providing other assets (or 1INCH itself) as liquidity to the pools.
Here, liquidity providers not only earn rewards from pool trades but are incentivized with 1INCH governance and utility tokens. At times, additional tokens from partner projects are added, which has seen substantial interest from users of 1inch and other respective projects.
1inch DEX Network: Road Ahead
Even with the DeFi ecosystem growing more vast by the day, the 1inch DEX Network is differentiated by giving a unified access point to multiple decentralized exchanges and liquidity sources. By pooling the liquidity of the wider DeFi sector and providing a native source of liquidity via its AMM, 1inch is on the path to opening the floodgates of liquidity in the decentralized finance ecosystem.
Cryptopedia does not guarantee the reliability of the Site content and shall not be held liable for any errors, omissions, or inaccuracies. The opinions and views expressed in any Cryptopedia article are solely those of the author(s) and do not reflect the opinions of Gemini or its management. The information provided on the Site is for informational purposes only, and it does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. A qualified professional should be consulted prior to making financial decisions. Please visit our Cryptopedia Site Policy to learn more.
Sergej Kunz is the co-founder of 1inch Network. Sergej first entered crypto back in 2012. After mining Ethereum for years, he launched a YouTube channel, CryptoManiacs, in which he did live security audits of smart contracts. His eventual 1inch Exchange co-founder, Anton Bukov, would join him as a co-host on CryptoManiacs soon after. In May 2019, at a hackathon in New York City, over the course of 60 sleepless hours, Sergej and Anton developed a DEX aggregator solution. This idea of a crypto exchange aggregator that splits deals across multiple exchanges, offering the user better rates than any individual exchange, became the basis for 1inch. From 2015 to 2019, Sergej worked for Mimacom consultancy, running projects for major customers, such as Bosch, Siemens, and Porsche. After joining Porsche on a full-time basis, he gradually shifted towards cybersecurity.
Is this article helpful?