1inch is the number one non-custodial DEX(decentralized exchange) aggregator.
It means 1inch collects data(aggregates) from several decentralized exchanges in one place.
Why is this good?
What is 1inch?
As previously mentioned, 1inch is the best DEX aggregator.
1inch collects data feed from several DEXes to present the best exchange rate for you.
On top of this, 1inch uses routing to be able to split the order between several DEXes.
How does 1inch work?
1inch DEX aggregator uses its API technology to find the best possible routes for a token swap.
The token swap can take place by trading across several exchanges.
This is the main value proposition of 1inch exchange. The the rate you get on 1inch is often much better than what you will get by sticking with a single DEX.
With that said, 1inch Exchange intends to solve the main problem with DEXes. Those are expensive transaction cancellations and high slippage that results from thin order books.
How to Swap with 1inch Exchange?
1. Connect a wallet with 1inch
1inch is a decentralized, non-custodial, exchange.
You will have to connect your web3 wallet to be able to make a trade.
If you dont have a web3 wallet, Metamask is the best.
Once you have created a Metamask wallet you can connect to the 1inch DEX aggregator. Once you click connect you will see the pop-up window according to the print screen below.
- Secondly, choose Ethereum or Binance network. If you choose Ethereum, you need Ether to be able to pay for a trader. If you choose Binance, you will need BNB to be able to pay for a trade.
- Lastly, choose your wallet and connect.
2. Make a swap on 1inch
Once you are connected to 1inch with your wallet to the Ethereum network your screen should look like the print screen below.
Make sure you have deposited Ether to your Metamask wallet address.
Now you are all set to make a swap on 1inch. In the screen below we have selected a market order but you can also to a limit order.
- Select the cryptocurrency you want to sell under “you pay”
- Select the cryptocurrency you want to receive under “you receive”
- After this, 1inch automatically search for the best exchange where you receive the maximum return. You can see all possibilities under “Exchanges”. In the example below the “DeFi Swap” network would give the maximum return. DeFi swap is the crypto.com network.
What is the 1inch Exchange Token?
The 1inch exchange token is a governance token. It’s meaning that you can use it to vote on the way that the 1inch platform is run. 1inch called this “instant governance”.
There is a maximum supply of 1.500.000.000 and the current supply in April 2021 is about 150.000.000. The next 30% will be distributed within the next four years, and the remainder at various intervals.
There are two ways to earn 1inch token
- By providing liquidity to 1inch’s liquidity platform.
- By staking 1inch tokens
How can you buy 1INCH token?
First, you must check what markets the 1inch token is available on.
The best way to do this is to browse to Coingecko and check for markets under the 1inch token.
Here, you will find that 1inch exchange and Binance has the most liquid markets.
However, you can´t deposit fiat into 1inch and you might have to open a Binance account.
Read more about Binance and get the best referral code in our Binance review.
What is Chi GasToken
The CHI gas token was introduced by 1inch to save Ethereum gas fees for its users.
Gas fees are charged from the Ethereum network for every transaction and will increase if the transaction is more complex to perform.
CHI gas token is used to hedge against gas fee volatility.
Basically, it’s a technology allowing you to tokenize gas. GasToken is a more liquid form of gas because it can be bought and stored at times when gas is cheap and released (spent/burnt) when gas is expensive.
According to 1inch the transactions on the exchange are up to 42% cheaper because of the CHI gastoken.
1inch Liquidity Pools
You can find the 1inch Liquidity Protocol pools by navigating to the DAP tab in the top menu on the exchange website.
Once here, you click on the Pools tab in the left sidebar.
As you can see, there are a number of pools available with good liquidity and very generous APYs.
However, with a great APY there is usually a great risk involved. The biggest risk with liquidity providing is impermanent loss.
1inch pros and cons
Pros and Cons with 1inch DEX aggregator.
- No hacking incidents
- User-friendly interface
- No fees
- High liquidity by combining several DEXes
- CHI Gas Tokens can reduce fees
- 1inch staking
- Liquidity providing
- No fiat currencies are supported
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