With their varied advantages over their centralised counterparts, namely self-custody, enhanced stability, listing autonomy and coin diversity, Decentralized Exchanges have become increasingly common among users.
Some of the big drawbacks, however, come in the form of low liquidity with thin order books that lead to high slippage and costly cancellations of transactions.
1inch Exchange is a DEX aggregator that is non-custodial and seeks to fix the thin order book and front running problems.
In this article, we will provide you with the overall aspects of the 1inch Exchange. Let us look into this review in detail now.
- Legal Name: 1Inch Exchange
- CEO: Sergej Kuntz
- Year Founded: 2019
- Exchange Type: Decentralized
- Trading Fees: Maker: 0.0%/ Taker: 0.0%
- Deposit Methods: Cryptocurrency
- Supported Cryptos: 200+ supported cryptocurrencies including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and more
- Fiat: No
- Customer Service: Email
Table of contents
What is 1Inch Exchange?
1 inch Exchange was founded by Sergei Kunz and Anton Bukov, two Russian developers who came together to audit smart contracts. Before founding 1inch Exchange, the pair participated in and received several bounties at hackathons for MakerDAO, Set Protocol, and Kyber Network.
1 inch Exchange is a decentralised exchange aggregator (DEX). It is built to roll all big DEXes into one network with liquidity and pricing, making it easy to get the best deal for the desired trade.
Trades can be divided around exchanges using 1 inch to minimise slippage to have the highest possible pricing. In addition, 1 inch is non-custodial, with all trades being carried out from a user’s Ethereum-based wallet within a single transaction.
1Inch Exchange Features
1) The 1 inch exchange offers liquidity and rates of multi-dex exchange on a single board.
2) 1 inch exchange does not hold any of the funds of the customer. The entire funds are held in the user’s ERC20 wallets.
3) Users basically have power over their coins. In order to sell and buy their coins, they will decide the trade.
4) No need for KYC, no need to build an account, you can just link and begin trading with your wallet.
5) There are Low chances of attacks by hackers, because no reserves are held at 1 inch.
1Inch Exchange Fees
1 inch exchange does not charge any fees for withdrawal. As the exchange does not deposit the funds, there is no withdrawal or payments associated. 1inch exchange does not levy any fees on the purchase, although the gas fees are applicable to the users. As any transaction is done on the Ethereum network, all transactions involve the payment of gas charges.
CHI Gas Token was also introduced by 1inch Exchange to pay transaction costs on 1inch. Transactions, if consumers choose paying payments in CHI tokens, will be 42 % more affordable.
1Inch Exchange Supported Wallets
1inch DEX supports the following Erc20 wallets:
- Trust wallet.
- Wallet Link.
- Wallet Connect.
How To Connect Wallet With 1inch Exchange?
Step 1: First click on the “connect Wallet” option located on the top right corner
Step 2: Then a popup window will be shown showing all of the supported wallets.
Step 3: Now pick any wallet that you wish to attach from the list
Step 4: Remember that to connect to the 1 inch exchange, you need to be signed in to your wallet.
Step 5: If you select the appropriate wallet, a wallet pop-up window will appear asking you to allow a link between your wallet and the 1 inch exchange.
Step 6: Then click on “connect” or “Authorize” to build a connection.
Step 7: Now your wallet is paired with that of the 1 inch Exchange
How to Swap Tokens On 1inch Exchange?
Step 1: Initially to start with the trade, click on the “SWAP NOW” option
Step 2: A user will be then asked to confirm their trade.
Step 3: Check whether all the details are correct, and then choose “VERIFY”.
Step 4: Then, inside their wallet, the customer will accept the transaction, and the trade will be performed on the blockchain.
1Inch Exchange Pros and Cons
- Clear and Intuitive User Interface
- No withdrawal fees, except for the network fee
- Support for various cryptocurrency wallets
- Limit orders, liquidity & lending pools
- It does not accept any deposit method other than cryptos.
- Might be difficult for beginners
1INCH Token is the native token of the 1inch exchange. The token has the following purposes:
1) To guarantee the participation of 1INCH holders in exchange development and governance.
2) To gain funds for further future development.
3) For staking purposes.
Is 1Inch Exchange safe?
1 inch Exchange is a DEX aggregator that is non-custodial. This suggests that the cryptocurrencies are not being held by the exchange throughout any point, unlike other centralised exchanges where the cryptocurrencies are deposited in their trading wallets.
It is also worth noting that 1inch Exchange has a spotless record so far of not facing any breaches or bugs to date.
In decentralised exchanges, liquidity is a major concern. In general, not only is liquidity poor on DEXes, but this liquidity is further dispersed over many distinct DEXes, rendering the issue worse.
This leaves large-volume transactions vulnerable to considerable slippage, resulting in weak trade execution pricing. By separating orders through exchanges, 1 inch solves this, thus holding the trade within one transaction.