What is 1inch (1INCH)?
1inch Exchange is a decentralized cryptocurrency exchange (DEX) aggregator used to buy or sell the cryptocurrency across multiple DEXs. Orders are split across multiple DEXs to find the best market price available by using arbitrage bots.
To achieve this manually would require several pairs of hands and lightning pace. However, 1inch Exchange achieves this in a single transaction. By searching across multiple DEXs, orders are split to minimize slippage. This can save a great deal of money when placing large orders in illiquid markets.
When using a crypto exchange to place large orders, traders are often caught out by slippage. Slippage is the difference between the price a trader expects to pay for an asset, and the actual price paid for the asset. If an exchange or a trading pair has low liquidity, even a modest order could dramatically push up a low-cap asset price.
Let‘s say you wanted to buy 10,000 tokens from an exchange at a market price of $1 per token. If that exchange has low liquidity, the chances are that the market price could increase before your order is filled. This is because your large order is pumping the market price of that asset. Therefore, you could end up paying considerably more than $1 for your tokens.
This is why 1inch Exchange is becoming so popular among crypto traders and investors. By spreading orders across multiple
decentralized exchanges (DEXs), the chances of slippage are reduced. As the liquidity used to facilitate an order is derived from multiple DEXs, the impact on price volatility as a result of a swap is lessened.
Who founded 1inch Exchange ?
1inch Exchange is founded in May 2019 by Russian developers Sergej Kunz and Anton Bukov. Kunz and Bukov both have strong backgrounds in smart contract auditing. In September 2018, Kunz began live streaming Ethereum smart contract security audits on YouTube.
Kunz partnered with Bukov and have since attended several hackathons worldwide. Kunz and Bukov secured sponsored bounties from MakerDAO, Set Protocol, and Kyber Network.
The 1inch Exchange blueprint was created ahead of the ETHNewYork convention as Kunz and Bukov were experimenting with arbitrage bots. During the event, the first medium viable product (MVP) was created for 1inch Exchange. This iteration aggregated liquidity from decentralized exchanges (DEXs) Bancor, Kyber, and Uniswap.
Can I earn money with 1inch Exchange?
Yes, you can earn money by trading 1inch Token. Buy low, sell high. 1inch Token can be used to trade against other cryptocurrencies. Always trade responsibly. Often the price is influenced by 1inch news.
Buy and sell 1inch at Coinmerce.