1inch

The 1INCH token is the governance and utility token of the 1inch Network, a decentralized finance (DeFi) platform that aggregates liquidity from various decentralized exchanges (DEXes) to provide users with the most efficient trading routes and better rates than any individual exchange could offer. The 1inch Network facilitates secure, fast, and profitable operations within the DeFi space, leveraging its aggregation protocol to source liquidity from over 400+ liquidity sources across 12 chains, including Ethereum, BNB Chain, and Polygon. The 1INCH token allows holders to participate in the governance of the network, including DAO governance and treasury management, and to stake their tokens for rewards.

• Utility:

• Used for governance, allowing 1INCH stakers to vote and receive rewards. It is also used in Fusion mode for prioritizing swap execution.

• Multi-chain:

• Available on Ethereum and BNB Chain, with no extra token issuance for the BNB integration.

• Token Unlock Schedule:

• 6% of the total issuance was unlocked on release day, with the rest to be gradually unlocked by the end of 2024.

• Total Supply:

• The total supply of the 1INCH token is 1,500,000,000 1INCH.

• Token Distribution:

• 30% for community incentive programs, 14.5% for growth and development, and the remainder for backers and core contributors.

As of today 26 December 2024, the price of 1inch is ₹36.89 INR, with a 24-hour trading volume of 58502608.31 USD. The market capitalization for 1inch is 541357024.89USD. The circulating supply is 1397161325.3 1inch, with the total supply also being 1500000000 1inch.

Pros:

• Aggregation Protocol:

• Offers users the best rates by aggregating liquidity from multiple DEXes.

• Governance Participation:

• Token holders can participate in the governance of the network.

• Multi-chain Availability:

• Enhances the token’s utility across different blockchain ecosystems.

• Community Incentives:

• A significant portion of the token supply is allocated for community incentives.

• Security:

• 1inch is one of the most audited projects in DeFi, ensuring user safety.

Cons:

• Complexity for New Users:

• The wide range of features and options might be overwhelming for newcomers to DeFi.

• Market Volatility:

• Like all cryptocurrencies, 1INCH is subject to market fluctuations.

• Regulatory Uncertainty:

• The evolving regulatory landscape for DeFi could impact 1inch’s operations.

• Smart Contract Risks:

• Despite audits, smart contracts are prone to undiscovered vulnerabilities.

• Liquidity Pool Risks:

• Liquidity providers face risks such as impermanent loss.

• Innovative DeFi Solutions:

• 1inch offers cutting-edge DeFi services, including the best swap rates and liquidity aggregation.

• Strong Governance Model:

• The token enables robust community participation in governance.

• High Security Standards:

• The platform’s commitment to security makes it a trustworthy choice.

• Growth Potential:

• The continuous development and expansion of services suggest a strong future growth trajectory.

• Community Incentives:

• The allocation for community incentives fosters a vibrant ecosystem.

• DEX Aggregation:

• 1inch’s ability to provide the best rates across multiple DEXes sets it apart.

• Multi-chain Functionality:

• The token’s availability on multiple chains enhances its utility.

• Governance and Utility:

• The dual role of 1INCH as both a governance and utility token.

1inch addresses the issue of fragmented liquidity in the DeFi space by aggregating liquidity from various sources, ensuring users receive the best swap rates and reducing slippage.

1inch was co-founded by Sergej Kunz and Anton Bukov, both of whom have extensive backgrounds in software engineering, smart contract auditing, and DeFi.

The ICO (Initial Coin Offering) price for 1INCH was $0.01. The token sale helped the project raise a total of $189.78 million. The ICO took place on December 25, 2020.

• Regulatory Risks:

• Changes in DeFi regulations could impact 1inch’s operations.

• Market Volatility:

• The price of 1INCH, like all cryptocurrencies, is subject to high volatility.

• Technical Risks:

• Potential undiscovered vulnerabilities in smart contracts.

• Competition:

• The DeFi space is highly competitive, with new projects constantly emerging.

• Dependence on the Crypto Market:

• Overall market downturns can negatively affect 1INCH’s price.

The 1inch whitepaper presents a comprehensive overview of the 1inch Network, which is designed to optimize and enhance the efficiency of trading operations in the decentralized finance (DeFi) ecosystem. The whitepaper delves into the technical aspects and the innovative solutions that 1inch provides, including the Aggregation Protocol, the Liquidity Protocol, and the Limit Order Protocol.

The Aggregation Protocol is a key feature of the 1inch Network, which utilizes the Pathfinder algorithm to analyze and route trades across multiple liquidity sources, ensuring users receive the best possible trading rates with minimal slippage. This protocol is capable of splitting a single trade across several exchanges, optimizing and reducing the impact on the market.

The Liquidity Protocol, another cornerstone of the 1inch Network, is designed to attract and retain liquidity providers by offering attractive incentives and yield opportunities. It introduces a unique model that mitigates impermanent loss, a common issue faced by liquidity providers in other automated market makers (AMMs).

The Limit Order Protocol offers users more flexibility and functionality compared to traditional DEX limit orders. It allows for placing orders that can be executed at certain conditions, providing traders with advanced order types and enhanced trading strategies.

The whitepaper also emphasizes the importance of the 1INCH token within the network’s ecosystem. The token serves multiple purposes, including governance, where token holders can participate in the decision-making process of the 1inch DAO. It also outlines the token’s utility in staking and liquidity mining programs, which are designed to secure the network and reward active participants.

Security is a major focus in the whitepaper, highlighting the rigorous smart contract audits and security measures that the 1inch team has implemented to ensure the safety of users’ funds. The non-upgradable contract design is one such measure that ensures the integrity and immutability of the deployed smart contracts.

The governance model is detailed, explaining how the 1inch DAO operates and the mechanisms in place for community governance. The distribution of Unicorn Power to stakers, which represents voting power within the DAO, is a novel approach to incentivizing and empowering the community.

The whitepaper concludes with a forward-looking statement, expressing the team’s commitment to further decentralization, the continuous development of innovative DeFi solutions, and the expansion of the 1inch Network’s services. It also underscores the importance of building a strong community of users, developers, and stakeholders who collectively contribute to the network’s growth and success.

This summary provides a glimpse into the detailed technical and strategic information contained within the 1inch whitepaper, which serves as a foundational document for understanding the network’s value proposition and future aspirations within the DeFi landscape.