1inch (1INCH) is the native token for the 1inch cryptocurrency exchange. Its purpose is to be used as a utility token to allow community governance settings on exchange and blockchain.
What is 1inch?
1inch is a decentralized exchange (DEX) aggregator that enables users to access multiple DEXs through bridges to get the best prices for their trades. The 1inch platform leverages automated market maker (AMM) technology to pool liquidity from numerous DEXs, thus allowing users to find the best possible swap rates. It also provides a fee-splitting mechanism wherein users can split their trading fees with a third party and save money.
1inch also provides advanced features like flash swaps, limit orders, and more. All trades take place on the Ethereum blockchain, ensuring that users retain full control over their assets at all times. With support for multiple blockchains, 1inch is quickly becoming one of the most popular DEX aggregators in the industry.
1inch has rapidly grown over the past few years and is now considered to be one of the leading AMM-based DEXs available. It provides a simple and easy-to-use platform that allows users to access multiple DEXs with a single transaction, ensuring they
Founded in 2019, 1inch Exchange has been thriving as it provides an effective solution for crypto transactions.
Buying and Selling Crypto on 1inche
When buying and selling coins on an exchange, slippage refers to the gap between the desired price and the actual outcome. These changes are likely to take place, especially on a less popular exchange or if the trading pair is less liquid.
That’s where 1inch Exchange comes into the picture.
By connecting multiple DEXs, 1inch can spread orders across various exchanges, search for matched offers, and reduce the possibility of slippage. By utilizing arbitrage bots, 1inch Exchange empowers order handling and processing capacity, and an order can be completed quickly – while saving a lot of costs to the trader.
Along with 1inch’s rapid growth at the exchange level, its core team realized that a fast-evolving DeFi system would need a token to help it become as efficient as possible, and as a result, they launched 1INCH.
What is the Purpose of 1inch?
1INCH can be seen as the lifeblood that runs through the veins of the 1inch Exchange network. Created under a decentralized autonomous organization model, 1INCH ambition is to renovate and bring DAO to a higher level, promising to be more efficient, user-friendly, and reliable than other systems.
The token gives its holders the right to have a say in running 1inch’s instant governance model, which seeks to remove barriers and allow holders to freely take part in the voting for any protocol settings.
The instant governance model assures the community of a more transparent environment where they can trade and benefit from their holdings. At the same time, their voices are heard and recognized.
Initially, there would be 2 co-existing governance modules operated by 1INCH token holders and the team, which are the Aggregation Protocol module to determine the allocation of Spread Surplus coins and the Liquidity Protocol module enabling voting on other major matters, such as fees and rewards.
As 1inch Exchange wants to continue expanding, 1INCH will be the main token for any future protocols and become the backbone of the whole 1inch ecosystem.
How Does 1inch Work?
Launched on Christmas 2020 through an airdrop, 1INCH tokens were a special present for crypto fans. In the airdrop, 90 million tokens, equal to 6% of the total float of 1.5 billion tokens, were gifted to any holders who met a set of simple conditions.
As mentioned before, all operations of the 1inch protocols are made possible by 1INCH tokens.
In the Aggregation Protocol, Spread Surplus coins, which are generated based on a higher rate of the aggregator compared with users’ expected rate, will be distributed for governance and referral rewards with the proportions determined by the DAO.
In the Liquidity Protocol (previously known as Mooniswap), the 1inch team utilizes smart contracts to enhance the swaps and incentivize liquidity providers, as well as prevent unfair slippages.
Spread Surplus coins created and distributed from the Aggregation Protocol are also converted into 1INCH tokens through this Liquidity module.
Since the beginning of 2021, with the newly upgraded 1inch Liquidity Protocol, both stakers and liquidity providers can participate in voting for protocol settings, along with joining the new exciting mining program.
With the current 6 pools paired with 1INCH, participants can receive an average of 300% Annual Percentage Yield (APY) upon their contribution to the network liquidity.