It’s only been two years since its inception, but the 1inch Network Decentralized Exchange Protocol (DEX) has already exceeded $ 85.8 billion in trading volume. At a hackathon in New York City in May 2019, 1inch co-founders Anton Bukov and Sergej Kunz developed a DEX aggregator prototype that became the basis of the network. DEX aggregators are platforms that derive liquidity from multiple DEXs, thus offering better token exchange rates with the lowest possible slippage.
The network has a market share of 57.40% in the DEX aggregator sector and more than 820,000 users. According to CoinMarketCap, 1inch Exchange is the eighth largest DEX in the world with a trading volume of $ 277 million in the last 24 hours.
On Monday, Bukov joined the Cointelegraph Markets Pro community for an exclusive “ask me what you want” session on Discord.
Cointelegraph Markets Pro: Do you think DEXs will serve the majority of cryptocurrency users, or will this segment be dominated by algorithms and trading bots?
Anton Bukov: I believe the DeFi industry will grow tremendously over the next three to five years. It’s already growing rapidly, but the benefits of peer-to-peer technologies can and will be experienced even more.
Of course, so that the DEX dominates over the CEX [exchanges centralizados], certain requirements must be met in the future. DEX and blockchain protocols have to work 100 times faster than they do today. Users need to understand the core concept of the technology. User paths need to be shortened and simplified for beginners.
1inch Network is a collection of robust and composable DeFi tools that enable experienced and new DeFi users alike to maximize the financial possibilities of Web 3.0 with a clean user experience and secure contracts.
CT Markets Pro: What makes 1inch stand out from the crowd?
AWAY: AB: 1inch’s mission is to help the entire DeFi space. And we work hard and fast to accomplish this mission. Our goal is to unite traders and liquidity providers and enable transactions that are mutually profitable. The main functionality of 1inch is to aggregate data from various decentralized exchanges and combine the best prices of all offers with the necessary liquidity. In April 2021, we launched the 1-inch wallet for iOS, a mobile multi-chain platform that offers a user-friendly interface with secure storage, transaction and staking functions. This versatile wallet has been designed from the ground up to optimize interaction with 1-inch features.
CT Markets Pro users: As a DEX aggregator, are there any plans to currently reduce commission levels across the network? What are the future plans at 1inch?
AWAY: Of course, the 1inch Foundation recently set up a gas reimbursement program for 1inch users.
AWAY: High profits often come with high risks. Users deposit more coins; This will decrease your income.
CT Markets Pro: Binance has a huge stake of 1INCH which makes up 44% of the governance votes. How does 1inch want to overcome this situation?
AWAY: Binance uses on behalf of its users; Binance never voted and will not vote as far as I know.
CT Markets Pro: : How does 1inch solve the bot problem?
AWAY: The 1inch Liquidity Protocol has a unique feature that protects users from this type of attack and ensures that users get the most out of every trade. To deter those who profit from such attacks, the 1inch Liquidity Protocol actually has “virtual charges”; Please see this article for more information.
CT Markets Pro: How difficult will it be to migrate from 1inch to Eth2? Will every liquidity provider be required to transfer their position?
AWAY: No DeFi developer should expect or prepare for ETH 2.0. The DeFi scaling takes place via Layer 2; The fragmented environment of ETH 2.0 makes no sense for DeFi.
I consider ZK Rollups to be a real scaling solution because the complexity of verifying ZK transactions is fixed and does not depend on the complexity of the transaction itself. It seems like magic, but it is like that ^^.
CT Markets Pro users: Is there a plan for multi-chain operations / transactions? Bridges etc.
AWAY: I recently posted an interesting thread on Twitter about the future of 1inch cross-chain; Please take a look:
1 / In the last few months I have been asked a lot about a cross-chain future @ 1 inch. Dozens of projects are actively working on bridges and some of them have applied for 1 inch grants or just asked for my advice / opinion. This thread gives my opinion on the subject. https://t.co/25Rgy5cYok
to???? Anton Bukov Ã ¢ Å¡â ???? Ã¯Â¸ ?? (@ k06a) October 25, 2021
1 / In the last few months I have been asked a lot about 1inch’s future on-chain. Dozens of projects are actively working on the bridges and some of them have applied for 1 inch grants or simply asked for my advice or input. This thread gives my opinion on the subject.
CT Markets Pro users: What do you think of Uniswap v3?
AWAY: They dramatically increase the capital efficiency of their pools. It is the ultimate solution for LPs (Liquidity Providers). But I see that traders have really bad exchange rates and huge slippages on Uniswap. I’m going to create a DuneAnalytics panel for this. Using aggregators should be a breeze for everyone, as 1inch alone has over 80 sources integrated into the Ethereum mainnet.
CT Markets Pro users: Are you involved in other projects besides 1inch?
AWAY: I only advise or advise on a few projects. But I’m working full time on the next big thing at 1inch.
CT Markets Pro users: Building a DEX aggregator seems incredibly complex. Are you using a single oracle as a price source or is there some other way to calculate prices?
AWAY: We have our own off-chain oracle to receive chain awards.
CT Markets Pro users: How has the explosion in gas prices affected 1inch trading?
AWAY: You can set up a new phrase or just enter your wallet address to test it in read-only mode. Since this is a wallet, you simply cannot create transactions and create signatures without a private key / seed phrase.
CT Markets Pro users: How do you work with Layer 2 solutions to make 1inch practical for smaller transactions? Do you have a preferred technology? Sidechain, Optimistic, Rollup, ZK Rollup, something else I’ve never heard of?
AWAY: Personally, I prefer the ZK rollups waiting for ZKSync 2.0 from Matter Labs, but for sure 1inch will support either popular / top 2 layer / sidechain solutions that have: users / tokens / DEX / activity.
CT Markets Pro users: In hardware, there are currently some solutions to connect to DEX by connecting Metamask to hardware and then to DEX. Do you think we can connect directly to the hardware without middleware?
AWAY: You can use a hardware wallet through the WalletConnect protocol, even on a mobile phone with the Ledger Live app. Take a look at our cool open source control panel.
CT Markets Pro: What are some of the latest cool innovations or developments around the 1inch network?
AWAY: We are working hard to offer another protocol soon and are also building a 1inch version for institutions: 1inch Pro.