1inch

The road ahead: A guide to 1inch 

Here's the scoop: 1inch is what we call a DEX aggregator. Think of it as your personal crypto detective, scouring every nook and cranny of decentralised exchanges (DEXs) to find you the absolute best trading prices. 

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. 

Let’s take a closer look at the whole 1inch ecosystem to better understand its role in elevating the way we crypto.

Background of 1inch

Picture this: it's May 2019, and two crypto wizards, Surjey Kunz and Anton Bukov, are cooking up something epic at an ETHGlobal hackathon. Surjey, the brains behind the code, used to tinker with fancy cars at Porsche, while Anton was a coding whiz with a background in the NEAR Protocol. Together, they're like Batman and Robin of the crypto world!

Fast forward to December 2020, and these two legends hit the jackpot with a whopping $12 million funding round! But here's the twist - it wasn't just any investors throwing cash their way; big shots like Pantera Capital and ParaFi Capital jumped on board the 1inch train too. 

Talk about levelling up!

And then, drumroll please...they dropped the mic with the launch of their very own 1INCH token! It was like the birth of a new crypto superstar, born straight outta the 1inch universe.

But wait, there's more! To spread the love, they did an airdrop of the 1inch governance token to all the early birds who had used the 1inch exchange platform before the big token reveal. 

What is 1inch?

Imagine you're at a mega crypto swap meet, and there are tons of booths with different prices and fees for trading your coins. It's a wild jungle out there! Now, 1inch swoops in like your crypto superhero to save the day!

1inch is like your trusty guide, scanning all these booths (or decentralised exchanges, as we call them) like Uniswap, SushiSwap, 0x, Kyber Network, and Balancer. It snatches up real-time data on prices and fees faster than you can say "blockchain"!

Now, instead of you running around like a headless chicken, trying to find the best deal, 1inch does the legwork for you. It checks all these exchanges simultaneously and finds the sweetest deal with the lowest fees in a flash!

And why does this matter? Well, because in the crazy world of crypto, prices can change faster than you can refresh your browser. With 1inch, you don't miss out on any golden opportunities because it's always on the lookout for the best deal in town.

Plus, here's the kicker: when you trade on 1inch, you're not handing over your coins to some big corporation. Nope, you keep custody of your precious assets in your own wallet, just like stashing your cash under your mattress (except way safer!).

So there you have it, champ! 1inch is like your best buddy in the crypto world, helping you score the best prices and keep your coins safe and sound. It's like having a super-savvy sidekick on your trading adventures!

Key Features

Imagine you're planning a dream vacation, and you want to score the best deals on flights and hotels. You'd probably turn to a travel booking website, right? Well, 1inch is like the ultimate travel guru for your crypto journey!

Just like those travel sites compare prices from tons of airlines and hotels, 1inch does the same, but for cryptocurrencies. It checks out prices and fees across different decentralised exchanges (DEXs), with the help of these features:

Aggregation Protocol: This is like having a super-smart travel agent who finds you the cheapest flights and hotels all in one place. 1inch automatically sends your trades to the exchanges with the best prices and lowest fees, saving you time and money.

Pathfinder: One of 1inch's main features is Pathfinder -- a routing algorithm that provides asset exchanges at the best rates on the crypto market. In other words, Pathfinder searches for the most effective paths for a token swap and divergent market depths in the shortest possible time. Think of this as your crypto GPS, plotting the most efficient trading routes across different markets. It even considers gas fees, so you're not burning through your funds unnecessarily. 

Furthermore, market depth refers to a measure of supply and demand for liquid assets based on the number of available trade orders. In relation to Pathfinder, market depths assume the role of bridges between source and destination tokens, making the protocol more sophisticated in its operations.

Liquidity Protocol: Alright, now imagine you're renting out your spare room on Airbnb to earn some extra cash. Well, 1inch's liquidity protocol is kinda like that, but for your crypto assets. You can earn passive income by depositing your coins into liquidity pools, and other traders use them for their trades. You earn special tokens in return, which you can trade or stake for more rewards.

Limit Order Protocol: This is for the advanced traders who want to set up some fancy rules for their trades. It's like putting up a sign that says "I'll buy this coin if it drops to a certain price" or "Sell this coin if it reaches a certain high." It's like having a personal assistant watching your back while you sip cocktails on the beach!

Another interesting feature is the ability of the algorithm to take advantage of collateral tokens from lending protocols such as Compound and Aave as part of the swapping path. Collateral tokens now are packed, unpacked, or migrated for a user within a single transaction, saving them time and money.

Security Features

But hey, what about security, you ask? 1inch takes security seriously. It utilises smart contract technology audited by top-notch security firms to ensure that your funds are safe and sound. Plus, you remain in control of your assets at all times, thanks to the non-custodial nature of the platform. It's like having a fortress guarding your treasure chest of crypto riches!

Basic Step-by-step Guide

Okay, so you want to dive into the world of 1inch.io? Here's a basic step-by-step guide:

Step 1
Head over to 1inch.io and connect your cryptocurrency wallet. Don't worry, it's as easy as logging into your favourite social media account.

Step 2
Choose the tokens you want to swap and enter the amount.

Step 3
Sit back and relax as 1inch.io does its magic, finding you the most optimal trade routes and executing your trade lightning-fast.

Step 4
Voila! Your tokens are now swapped, and you've saved yourself some precious gas fees and hassle.