What is 1inch Network [DeFi and DEX]

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Welcome to the New To Crypto podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to crypto podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you, coming at you from the training center in the lifestyle design studio. Here’s your host Crypto Travels Michael.

 

Okay, welcome to today’s episode. I’m excited to go over today’s episode with you. I’ll tell you this podcast has been a lot of fun here with you. So far, we have 30 episodes published, and listeners have tuned in from 61 different countries and 361 different cities around the world. Wherever you’re tuning in and listening in today. I welcome you. So let’s jump into today’s episode. What is the 1inch? 1inch is a decentralized exchange DEX aggregator so, it connects several decks into one platform to allow its users to find the most efficient swapping routes across all platforms. Without an aggregator DEX, you would need to look at every exchange to find the best price. DEX aggregators eliminate the need for manually checking, bringing efficiency to swapping DEXs.

 

So DEX aggregators work by sourcing liquidity from different DEXes, meaning that they are able to offer users better token swap rates than they could find on any single DEX. And this is done in the shortest time possible. So 1inch launched in August of 2020 and Binance labs was involved in the original $2.8 million fundraise along with some capital groups. So 1inch in the winter of 2020 also launched Mooniswap, its own AMM, or automated market maker. In December of 2020 1inch launched its 1inch governance token, and the 1inch Network began to be governed by a decentralized autonomous organization, which is also known as a DAO. So who were the founders of 1inch? Well, 1inch was founded by Sergej Kunz and Anton Bukov. It’s been reported that the two had met during a live stream of Kunz’s YouTube channel cryptomaniacs, and begin entering hackathons together. They won a prize at the hackathon in Singapore, as well as two major awards from Ethereum Global.

 

So let me ask you what makes 1inch unique? 1inch is unique in that it provides instant governance for its users. This feature allows 1inch users to vote for specific protocol settings in their decentralized autonomous organization, or DAO. And a quick side note, anyone can trade on a decentralized exchange, traders need only to connect their wallets and you never give up access to your funds or private keys or personal information like you do with centralized exchanges. Some people prefer DEXes. Some people prefer centralized exchanges, and some prefer both. Whatever you prefer, the option is yours. I personally use both. They each have their own use cases for me. So let’s talk about the 1inch token. 1inch has its own token effectively called 1inch. The 1inch token launch was announced in August of 2020. And the 1inch tokens are intended to be used for the consumption purposes on the 1inch network. The 1inch token protocols. The 1inch token will be used to stake and participate in the governance of 1inch protocols by all holders and the current circulating supply of 1inch

 

is over 180 million tokens. The current total supply is 1.5 billion tokens. And the market cap today is just over $572 million. It’s been reported that of the total token supply 30% was allocated to community incentives. They will be passed out over the next four years in order to create an incentive for community members to be involved in protocol governance. Over a four year period, 14 and a half percent of the total supply will make up the protocol growth and development fund. And it’s used to issue grants, bring on developers and repay end users due to unforeseen circumstances. So let’s talk about how 1inch network is secured. 1inch is non custodial, and all trades take place within one transaction from a user’s Ethereum based wallet since December of 2020, Oasis, Kyber Network, Uniswap, 0x Relayer and others have been integrated into 1inch’s protocol. So let me ask you, where can you buy the 1inch token? Currently, it’s available on several exchanges like Binance, Uniswap (the DEX) and of course 1inch, as well as some others to see all of the exchanges where it’s currently available, check out Coinmarketcap.com under 1inch. So the 1inch token represents voting rights and facilitates participation in the DAO, or decentralized autonomous organization that governs the 1inch DEX platform.

 

DAOs are pretty common in the crypto industry, and in the DeFi industry in particular. So the 1inch exchange has a governance model known as instant governance. This proprietary model makes it easier for token holders to make changes to the protocol. I hope that this information has been useful for you. And if you like today’s episode, definitely subscribe to the podcast. It’s currently on all major platforms where you can subscribe. And just a quick update on the new to crypto website. The website will be ready soon. I’m on the fourth version of the site. And I want to make the final version of the site to be easy to navigate for you to access all of the resources that are mentioned on the show, as well as others such as how to guides that I have coming up that I’m creating for the site. I’ll keep you posted about the website and I assure you that it’s coming soon. So that concludes today’s episode. Until tomorrow. Make it a great day.

 

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By: cryptotravelsmichael
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Table of Contents

Welcome back to a new podcast episode! For this episode, we’re going into just what 1inch is and why it seems beneficial. 

Let’s get into it! 

What Is 1inch? 

1inch Network is a decentralized exchange aggregator that scours several decentralized exchanges for the most profitable platforms for liquidity providers. 

It gives users access to over 100 sources in the Ethereum ecosystem, as well as the Binance Smart Chain and the Polygon Network.

The aggregation protocol of 1inch Network uses a variety of techniques to execute its purpose, allowing customers access to approximately $30 billion in liquidity sources.

Sergej Kunz and Anton Bukov, two Russian programmers, created 1inch Network. 

They collaborated to design the 1inch Network blueprint since they are experts in smart contract audits. 

Kunz and Bukov, both DeFi aficionados, began by experimenting with arbitrage bots at the ETHNewYork hackathon in 2019, generating the first medium viable product.

The protocol used by the 1inch Network splits orders over different DEXs to get the best market price. The protocol employs a mix of arbitrage bots and other algorithms to accomplish what would take several pairs of hands working at breakneck speed in humans. 

Users can swipe tokens across three networks at the lowest prices, thanks to 1inch Network.

What Is 1inch’s Aim? 

DEXs provide more security and autonomy, but a lack of liquidity can cause slippage, which is an inefficiency in asset pricing that results in a gap between the expected price of a trade and the actual price of the trade when it is performed.

DEX aggregators, such as 1inch, strive to broaden liquidity pools by scanning a number of DEXs to determine the best market price for a deal. 

We may begin to analyze the influence of 1inch on liquidity by dissecting the functional distinctions between centralized and decentralized exchanges. 

Slippage happens when insufficient trading activity causes an asset to be purchased for more than it was initially planned or sold for less than it was meant initially due to a lack of trading volume. 

The 1inch DEX protocol pools liquidity from many DEX platforms to increase DEX liquidity and reduce order slippage. 

The 1inch protocol helps by pooling liquidity and reducing market inefficiencies like slippage by combining trade activity across many platforms.

The 1inch Liquidity Protocol, an AMM that uses virtual balances to reduce temporary loss, also helps to boost liquidity on 1inch. 

On the 1inch DEX platform, members can receive 1INCH, the native token of 1inch, by giving tokens as liquidity – liquidity mining — in which traders give assets like ETH to a specified pool, lock it in, and earn 1INCH as interest.

The 1INCH coin was released as a governance token retrospectively to users of the 1INCH exchange platform on Christmas Day of 2020. 

1INCH tokens have equal voting rights in 1INCH’s decentralized governance administration as a governance token.

1inch is unique in that it provides instant governance for its users. This feature allows 1inch users to vote for specific protocol settings in their decentralized autonomous organization, or DAO.

- Crypto Travels Michael

Here's What We Discussed in Detail in This Interview

  • What is 1inch
  • Benefits and features
  • 1inch Token
  • The DAO
  • Founders of 1inch

Killer Resources

HOW TO REACH TO CRYPTO TRAVELS MICHAEL

Final Thoughts

1inch is a crypto exchange aggregator that uses its 1INCH utility and governance token to scan decentralized exchanges for the best cryptocurrency values for traders.

The platform’s decentralized instant governance approach is powered by 1INCH, which also supports liquidity mining via token staking.

The New to Crypto Podcast is designed to guide you through the crypto landscape with pinpoint accuracy. New episodes are added daily. Be sure to subscribe to the podcast and listen to all of the episodes to help you in your cryptocurrency journey.

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