What Is the 1inch Network?
The 1inch Network is a decentralized exchange aggregator. It allows users to find the best token exchange prices. In order to choose the most beneficial paths for trading tokens, the platform uses its own API technology – the 1inch Pathfinder. Essentially, the algorithm scans the market to find the most convenient exchange options.
The 1inch crypto project employs various protocols including:
- The Limit Order protocol. It provides users with such functionalities as various types of orders (stop-loss, trailing stop, etc.), additional RFQ support, auctions, dynamic pricing, and so on.
- The Liquidity protocol. Essentially, it’s an AMM that offers significant prospects to liquidity providers while safeguarding users from front-running attacks.
- The Aggregation protocol. It aggregates liquidity from multiple DEXes to ensure the best trading rates.
1INCH is the native token of the platform. Since it’s a governance token, it allows community members to vote on various changes. The voting takes place under the DAO model, which makes the 1inch Network efficient and transparent. Check out the 1INCH price chart above if you’re interested in the current 1inch Network price.
The Story of the 1inch Network
The idea of the 1inch Network was developed in less than 60 hours during the ETHGlobal New York hackathon in May 2019 by Sergej Kunz and Anton Bukov. They had previously met during a live stream of Kunz's YouTube channel called CryptoManiacs. After that, they started participating in hackathons together, which eventually resulted in the creation of a huge DeFi project.
This network was developed because Kunz and Bukov disliked having to spend so much time searching for the best price on DEX platforms. Thus, they started looking for their own private trading method to create the most convenient system.
What Is 1INCH Token?
As mentioned before, the 1INCH token is the governance token of the 1inch Network. The stakers of the token get the opportunity to participate in the governance processes of the 1inch Aggregation and Liquidity protocols. The network employs the instant governance feature that allows users to vote for protocol settings without going through long voting periods.
However, the 1inch Network token is also a utility token. Primarily, in terms of utility, 1INCH is used as a connector in the Liquidity protocol of the network to enable high-efficiency routing.
Besides that, it can also be staked on the 1inch derivatives liquidity pools. It allows liquidity providers to generate decent yields for locking their tokens in the pools. Also, as long as the 1inch Network price remains below the strike price, stakers are able to generate APR as well. The pools are rebalanced each week, thus, the strike price constantly changes. Again, you can check the 1INCH price on the chart above.
One way or another, rather than being a tool for investment, the 1INCH token was initially developed as a tool for creating and maintaining a decentralized and permissionless network.
Tokenomics of 1INCH
There were three investment rounds during which the project managed to acquire $2.8 million, $12 million, and $175 million from a huge variety of companies and angel investors.
The total supply of 1inch Network tokens is 1,5 billion. In terms of token distribution, 30% goes to community incentive programs. Another bigger portion (22,5%) goes to core contributors. The remaining portion is distributed between backers and the 1inch growth and development fund.
Besides, if you want to purchase the tokens, note that the 1INCH price is quite volatile. Just like it is with the majority of crypto assets. This is the case because various factors influence the crypto market which makes it fluctuate. Thus, it would be useful to analyze the 1inch Network price changes to find the best opportunity to purchase the token.
