How the 1inch Network offers an unmatched degree of versatility
Another post in a series focused on the 1inch Network’s advantages highlights the versatility and flexibility of 1inch protocols.
As the DeFi space develops rapidly, new concepts and potential implementations arrive quite often. Therefore, versatility and flexibility are vital as they facilitate the use of protocols for a wide range of tasks.
The 1inch Aggregation Protocol can be the basis for a variety of DEX aggregation systems. 1inch’s Pathfinder, an aggregation information service from the 1inch Network that finds the best trading paths across multiple markets, taking gas costs into account, is just one example of a solution implemented on top of the protocol. Other similar services could be also built on the 1inch Aggregation Protocol.
Similarly, the 1inch Liquidity Protocol offers a great deal of versatility and flexibility, facilitating various liquidity pools.
But when it comes to flexibility, the 1inch Limit Order protocol is truly remarkable. Its two main features — dynamic prices and conditional execution — enable the use of the protocol in a wide range of use cases, from stop-loss and trailing stop orders to auctions.
One promising area for the protocol is to power auctions. Let’s look at a more specific example. Maker DAO’s Liquidation 2.0 Module is based on the auction model, and users could, for instance, take part in Maker DAO auctions, using the 1inch Limit Order Protocol’s dynamic pricing feature.
Along the same lines, the protocol facilitates the creation of customized market making tools on top of it. Among tools of that kind could be one that powers earning on a pair of assets pegged to the same currency, like USDC and DAI, both pegged to the US dollar.
We’ll be back soon with more on the 1inch Network’s advantages and features. Stay tuned!