20.04.2023
What is 1inch? Project overview
1inch token is a coin of the well-known Ethereum algorithm. On the basis of Ethereum, decentralized crypto exchanges (DEX) function, which are interconnected by the 1inch cryptocurrency. The purpose of this digital asset is that it offers its users the best prices and the most effective options for route swaps on all leading DEX. Such exchanges allow their users to perform financial transactions without the participation of intermediaries and third parties. The 1inch system was designed in such a way as to collect and analyze data on the price and prospects of coins on all platforms, and to provide its client with the most profitable options for purchase. This saves a lot of time, because the user himself would have studied this information for a very long time. Thanks to DEX aggregators, the problem of manual checks has been eliminated.
1inch - what is this coin?
The 1inch cryptocurrency was released in 2020 at the end of summer. The 1inch Network token is influenced by decentralized autonomous companies — DAO. The release took place thanks to the attraction of funds in the amount of almost 3 million US dollars from such projects as: Binance labs, FTX, LAUNCHub, Dragonfly Capital, Galaxy Digital and others.
Later in the winter of the same year, the cryptocurrency attracted about $ 12 million more in the course of new financing from such investors: ParaFi Capital, Nima Capital, Blockchain Capital. As a result of the large amount of funds raised, the platform released its own personal market maker called Mooniswap.
Who created 1inch?
The project and the coin were created by Sergey Kunts and Anton Bukov at a hackathon in New York in just 3 days. Today, this project is one of the fastest growing DeFi products in the world. Two developers met on a live broadcast on the CryptoManiacs channel, which belongs to Kuntz on Youtube. After this acquaintance, they decided to cooperate in Singapore and together won a prize at a hackathon. Previously, Kunz worked as a developer at Commerce Connector, Herzog Agency, Porsche and Mimacom, where he held senior positions on cybersecurity. Bukov has been working in the DeFi system on Near Protocol since 2017 and gDAI.io . He is now the technical director of the 1inch token.
Key features of the coin
The 1inch cryptocurrency is unique in that it allows its customers to perform instant management on their own. This means that any registered user of the system has the right to vote. The vote may be for a change in some functions of the DAO protocol.
How many coins are available in total?
The coin was issued in 2020, three years ago. Back then, one of the co-founders announced that the token would be developed and registered with a certain regulator, but did not specify what exactly it could be. According to him, it was possible to understand that he sees the purpose of this coin in using it as a security or investment. First of all, the cryptocurrency is designed to use the primary goals and objectives of the 1 inch Network, its protocols, applications and the system as a whole. Sergey Kunts said that an independent council was assembled on the Cayman Island, which decided that the 1inch Foundation was going to support its new coins.
The first offer of coins on December 25 of the year of issue amounted to about 6% of the total circulation of coins. As a result of mining, which was in the first two weeks, it was possible to get about 5.5% more coins. At the moment, the total supply of tokens is almost 1.5 billion coins. Of the total number of available coins, about 35% was allocated for the development, improvement and stimulation of the community. However, they will not be transferred to the community immediately, but over the next few years, in order to motivate users to constant active actions as much as possible. Within 4 years, a monetary fund will also be accumulated for the development of the coin and the system, which will act as a guarantee of the reliability of the project to attract new developers. Thanks to this fund, permanent payments will be made to users, as well as 1 inch cryptocurrency will be paid in case of unforeseen circumstances.
What is Pathfinder in 1inch?
Pathfinder is a kind of algorithm for finding a route that was developed by the 1inch Foundation team. With its help, servers are looking for the most efficient and suitable route for the token. Let's give an example of exactly how it works. If the user needs to sell BTC for ETH, then the Pathfinder algorithm will select such platforms for you: SushiSwap, Uniswap, Okex, Balancer and many others. After the client's request, the system automatically searches for the most profitable route, which will be able to optimize liquidity and high commissions, providing users with the most profitable options. This eliminates a long search for a separate check of the pricing policy of each site.
1inch protocols
- Aggregation Protocol. The 1inch token selects the most profitable deals on platforms for users in automatic mode. Thus, it allows traders to use a single platform, compare pricing policies, and perform exchange operations on all DEX. One of the latest developments, namely Pathfinder, determines the top trading lanes and takes into account the commission for many embezzlements. It sorts small and large transactions so that the user can examine structured information. For example, let's say that you want to exchange a $200 DAI stablecoin for bitcoin on the 1inch platform itself. The platform will detect if users will offer low commissions and will select the best option for you. Perhaps the exchange of DAI for BTC will not be as profitable as the exchange of DAI for ETH. 1inch-usdt may also be more profitable than 1inch-xmr.
- Mooniswap Liquidity Protocol. This protocol was released so that the user could receive passive income from their digital assets on an ongoing basis by placing them in the liquid pools of the 1inch Foundation system. Cryptocurrencies that are stored there can be used further in trading and conclude transactions on DEX 1inch. In return for such storage, liquidity representatives receive LP tokens, which can also be sold or exchanged for other tokens and coins. The Mooniswap protocol also uses the virtual betting feature, which was developed in order to solve the problem of speculators on the digital market. For example, a coin is being launched, a trader or a bot instead watches the bids offered by other users and offers prices higher. Thus, they are ahead of the trade deals and try to terminate them to their advantage. And virtual bets, in turn, make adjustments in the pool itself, which eliminates the insidious schemes of hackers.
1INCH price forecast and project development prospects
Since the release of 1inch, the rate has increased significantly, although there have been ups and downs in price, just like in any other crypto coin. Traders with many years of experience predict the further growth of the coin and their long-term profit, as a result of the volatility of the coins. Investors are advised to be patient, as the coin project and its algorithms are constantly being improved. Cryptomaniacs predict a reversal of the coin closer to 2026, as the acceptance of this coin on the digital market from new users will grow.
