How the 1inch Network ensures the best swap prices
The first post in a series on the 1inch Network’s advantages explains how split swaps enable users to get the best token exchange prices.
Users exchanging their tokens are primarily looking for the best prices, and this is what the 1inch Network can offer them, thanks to the 1inch Aggregation Protocol and the aggregation service Pathfinder, which splits swap deals across multiple DEXes.
The core element of the protocol is the 1inch v3 smart contract, which performs runtime verification of transaction executions, preventing users from interaction with an unsafe liquidity source.
Since the smart contract ensures proper security, the protocol can be used in various aggregation information services, such as Pathfinder, developed and run by the 1inch Network.
Within less than a second, Pathfinder finds the best trading paths across multiple DEXes, also taking gas costs into account. Pathfinder operates on Ethereum and Binance Smart Chain (BSC), with more than 70 protocols on both chains integrated and available as liquidity sources for swaps.
Pathfinder also supports 1inch’s gas token, Chi, which enables users to save up to 40% on gas fees. DEX aggregation saves users not only money, but also time, as they don’t have to manually check multiple exchanges, looking for the best swap prices.
Meanwhile, version 3 of the 1inch Aggregation Protocol, which was recently released, offers users extra savings on swap fees.
The feature applies to swaps using Uniswap v2 and its forks, such as SushiSwap, LuaSwap etc. Previously, swaps on Uniswap v2 were cheaper than on 1inch, but now the opposite is true. Swapping ETH for DAI on 1inch, for example, requires 10.3% less gas than the same trade on Uniswap and 4.9% less than on 0x.
We’ll be back soon, explaining other advantages of the 1inch Network. Stay tuned!