1inch Network Overview
What is the 1inch Network?
The 1inch Network (https://1inch.io/) unites decentralized protocols whose synergy enables the most lucrative, fastest, and protected operations in the DeFi space by offering access to hundreds of liquidity sources across multiple chains. The 1inch Network was launched at the ETHGlobal New York hackathon in May 2019 with the release of its Aggregation Protocol v1. Since then, 1inch Network has developed additional DeFi tools such as the Liquidity Protocol, Limit Order Protocol, P2P transactions, and 1inch Mobile Wallet.
1inch dApp – a web-based application that is connected to all supported blockchains via smart contracts. The dApp offers access to deep aggregated liquidity and competitive token swap rates on various DEXes, with unique features, including partial fill and the ability to find the best swap paths across multiple liquidity sources.
1inch Aggregation Protocol – the 1inch API v5, Pathfinder, is a cutting-edge discovery and routing algorithm, which offers asset exchanges at the best rates on the market. Pathfinder finds the most efficient paths for a token swap, able to split between different protocols and even different market depths within one protocol in the shortest possible time.
1inch Liquidity Protocol – 1inch Liquidity protocol (previously called Mooniswap) is an AMM that aims to offer capital-efficient liquidity positions while protecting users from front-running.
1inch Limit Order Protocol – 1inch Limit Order Protocol is a set of smart contracts that allows users to place limit orders, and RFQ Orders, which later can be filled on-chain. Both types of orders are a data structure created off-chain and signed according to EIP-712. Key features of the protocol are extreme flexibility and high gas efficiency. Thanks to the gasless limit order feature, an entry threshold for new users of 1inch protocols became significantly lower.
P2P Transactions – 1inch Peer-to-Peer allows two users to make an over-the-counter style trade of any ERC20 token.
1inch Mobile Wallet – The 1inch Wallet is a non-custodial crypto wallet with the best swap rates and the swiftest web3 browsing experience. Available both on iOS and Android.
Supported Networks – 1inch protocols are deployed on the following Ethereum Virtual Machine (EVM) networks: Ethereum, BNB Chain, Polygon, Arbitrum, Optimism, Gnosis Chain, Avalanche, Klaytn, Aurora, zkSync Era and Fantom.
1inch Foundation, 1inch core contributors, 1inch DAO
The 1inch Network is composed of three distinct groups of stakeholders: the 1inch Foundation, the 1inch core contributors, and the 1inch DAO. All stakeholders are working towards the common goal of growing the 1inch Network in a decentralized manner.
Though they share a common goal, each group operates totally independently. For example, the DAO can signal to the Foundation that they want to see certain changes. However, if the Foundation cannot implement these changes for whatever reason, the DAO will need to fund the development and implementation of these changes themselves.
The 1inch Foundation is an independent non-profit organization. Its mission is to foster the 1inch Network’s growth and support initiatives that benefit the 1inch Network's community. The 1inch Foundation issued the 1INCH token, but the 1inch DAO has control over the token smart contract in the 1inch Network. As part of its mission, the 1inch Foundation is focused on, among others, the following areas:
Ownership and control of the 1inch.io domain name, and 1inch front-end;
Ownership and control of the 1inch: Crypto DeFi Wallet;
Maximizing the 1inch Network’s decentralization;
Growing the number of stakeholders and governance participants;
Incentivizing developers to build on top of 1inch Network’s protocols;
Farming programs and gas refunds;
Network research and analytics;
Integrations that increase usage of the 1inch Network;
Organizing events; and
To finance these goals, the 1inch Foundation maintains control of its own funds (separate from the DAO treasury).
1inch core contributors
The 1inch core contributors are a decentralized group of 1inch Network technical contributors dedicated to building out the 1inch Network. Among the technical contributors, the largest contributor is 1inch Labs. 1inch Labs concentrates on, among others, the following areas:
Providing general software development services for the 1inch Network and others;
Maintaining the 1inch Pathfinder algorithm and API; and
Serving as a SaaS (software as a service) provider of its Pathfinder algorithm for certain enterprise clients.
The 1inch DAO is the decentralized autonomous organization that governs the 1inch Network through a set of onchain smart contracts. Voting on the DAO is through the 1INCH token, a governance token, that was initially distributed to the community of 1inch Network users in late 2020. The 1inch DAO has control, among others, over the following:
Liquidity Protocol Instant Governance;
Aggregation Protocol Instant Governance;
1inch Network revenue stream; and
1inch Network DAO Treasury.
In addition to the on-chain assets currently controlled by the DAO, it also has the ability to fund the development of modules/contracts and deploy them (e.g., alternative front-ends, new network deployments, new API integrations, integrations, new smart contract deployments, etc.).
Since the 1inch DAO is structured in a trust-minimized fashion, all actions taken by the DAO require a vote from the 1INCH token holders.