What is 1inch?
1inch is a decentralized exchange (DEX) aggregator that helps users find the best prices across various DEXs for their token swaps. 1inch uses a powerful algorithm called Pathfinder to scan multiple exchanges and liquidity protocols, ensuring users get the most favorable rates and lowest transaction fees.
By aggregating liquidity from over 50 sources on Ethereum, 20 on Binance Smart Chain, and 8 on Polygon, among others, 1inch facilitates efficient and cost-effective trades. The platform also includes features such as limit orders, which allow users to specify the price at which they want to execute a trade, and Fusion, a mechanism designed to reduce gas fees and mitigate front-running risks by using a Dutch auction process.
1inch's governance and utility token, 1INCH, enables holders to participate in the platform's decentralized autonomous organization (DAO), influencing the future direction and development of the protocol. The token is also used to facilitate gas-preserving swap execution and other ecosystem utilities.