What is 1INCH Exchange?

1 inch is an unattended DEX aggregator, with all transactions executed in a single transaction from Ethereum-based user wallets.

Offering users the cheapest deals, the lowest slippage, and access to a wide variety of ERC-20 tokens, According to CoinGecko, the exchange supports 283 coins and 296 trading pairs.

Ecosystem

Oasis, Kyber Network, Uniswap, Mooniswap, Balancer, and other popular DEXs are integrated into the 1inch protocol. This means that users can exchange nearly any ERC-20 token for another ERC-20 token.
The 1INCH native token functions as a governance token as well as a unified token.
The platform has its own Chi Gastoken to help users. Especially seasoned traders and arbitrageurs, reduce gas costs for trades.
In addition, the 1inch team introduced Mooniswap, a next-generation automated market maker (AMM) with virtual balance. The liquidity provider to capture the profits that the arbitrageurs earn.

1INCH Problems solved

DEX is becoming more and more popular among users, with various advantages over its centralized counterparts. It has self-regulatory capabilities, enhanced security, listing autonomy, and coin diversity.
Some major limitations are thin order forms with low liquidity, which lead to high slippage and expensive order cancellations.
Anyone can see a transaction before it is mined after it is sent to the blockchain after every order is sent to the blockchain. This visibility makes any transaction vulnerable to blocking because early runners can pay higher gas prices to incentivize the mining network to execute their own transactions first.

How does 1INCH solve the Problem?

At the 1-inch exchange, users can swap as well as place limit orders for a variety of tokens.
Trades of more than one inch can be split between exchanges to reduce slippage and provide the best possible price for the desired transaction. Mooniswap, Oasis, Kyber Network, Uniswap, 0x Relays, and others are all integrated into the 1inch protocol.
The price and liquidity available from each platform are clearly displayed to the user, along with gas fees. This saves users both time and clicks. Avoid having to open multiple exchanges and evaluate orders.

Fee for each 1INCH of Exchange

1 inch with no withdrawal fee. The only fee is the network fee charged by the exchange that the user routes through (e.g., Uniswap, Kyber Network, etc.). This amount depends on the gas price at the time of the transaction.

Since this fee is charged by another exchange, 1 inch does not benefit from this fee in any way. However, users have the option to save gas by using the 1inch Chi GasToken.

What is the 1INCH token?

The 2020inch Foundation Independent Board issued a 1INCH token on December 26, 2020. Free tokens are being distributed to the community to celebrate the launch of the 1INCH token.

1INCH is both a governance token and a unified token. As a governance token, 1INCH will be used to manage its network protocols and thus enable it to be managed under the Decentralized Autonomous Organization (DAO) model.

The Future of 1INCH

The benefits far outweigh the drawbacks as it attempts to solve some of the serious problems that are hindering the growth of the DeFi ecosystem.

The platform is definitely geared towards more experienced traders, especially those who trade major cryptocurrencies and across multiple DEXs. Over time, as the user experience improves, 1INCH could become one of the most important trading platforms for the rapidly expanding DEX ecosystem.

Should I use “1INCH Exchange?”

Here are some pros and cons for you to consider. The 1 inch exchange has the following advantages:

Exchange’s interface is very intuitive.
There is no withdrawal fee except for the network fee.
Address the liquidity issue by separating the order books on the exchanges while keeping the transactions in one transaction.
Spending GasTokens assists users, particularly day traders and arbitrageurs, in lowering their transactional gas costs.
The new AMM-Mooniswap exploits user slippage and protects traders from pre-run attacks.

However, there are also disadvantages, such as:

Many of the features provided by Exchange are difficult to use.
The infinity unlock feature may serve as a potential point of attack for hackers. While unlocking each transaction is a bit more expensive, it is more secure because users are not always associated with the protocol if it is compromised.

See ya in the next article !

Don’t forget to follow useful articles about Crypto Market from team Holding B !!!