What is 1inch Network (1INCH)?

1INCH is a decentralized exchange (DEX) aggregator on the Ethereum blockchain, providing users with the best trading prices. It searches through a series of exchanges like 0x and Uniswap and reroutes its users’ trades between the lowest options. In addition, 1INCH allows its users to pay fewer gas fees.

1INCH exists as a token on different marketplaces such as Bitbuy, Coinbase, Smart chain(BSC), Polygon, etcetera.

Who Created 1INCH?

The token was founded by the former Porsche software engineer Sergej Kunz and the developer Anton Bukov in May 2019. This took place during the ETHGlobal hackathon.

In August 2020, 1INCH was launched on the Ethereum blockchain after Kunz and Bukov raised about $2.8 million. They sourced this fund across several platforms such as FTX, Libertus Capital, Binance Lab, etcetera.

How Does 1INCH Work?

The way 1INCH works is similar to travel agencies. Let’s say you book a vacation trip from New York to Tahiti Island. Your agency will search for the best airline with the lowest price and the best hotel with excellent service delivery at a low cost. In the end, you move from New York to Tahiti and enjoy the vacation without knowing all that your travel agency went through to get you there.

This token works the same way. Here it helps a trader swap from one token to another by rerouting the swap through several DEXs like Balancer, Uniswap, etcetera. Let’s say you want to swap 200 ETH for BTC.

1INCH may notice that for you to get the best price with low transaction fees, it needs to reroute your trade across several DEXs. So, it may swap 20% of your ETH through Uniswap, 40% through Balancer, 30% through Curve, and 10% through SushiSwap. In the end, what you get is 100% of your ETH as BTC.

In June 2021, they launched a liquidity protocol (Mooniswap). This allows users to earn cryptos by depositing funds to a liquidity pool. They can trade this crypto using the 1INCH decentralized exchange.

All users of this DEX before the token was released in December 2020 earned a 1INCH token. With this token, they can vote to regulate the activities within the network.

In early 2022 1INCH introduced a decentralized autonomous organization (DAO) that served as a governing body for the network. About 30% of its 1.5 billion tokens go to the community of token holders who serve as DAO.

Also, the emergence of the limit order protocol helps users to lock up their profits and stop losses using features like trailing stop orders and stop-loss orders.

Is 1INCH a Good Investment?

The token holds excellent value with the utility and governance purposes the token serves for its holders. These token holders are becoming a community with the ability to gain complete control of 1INCH in the future. The token can be staked to be able to vote in proposing an idea for decision-making.