DeFi 1inch Network All you need to know

Introducing the 1inch Aggregation Protocol v3

1inch Network-photo

by 1inch Network

• 2 min read

The latest upgrade to the fastest and most advanced DEX aggregation protocol in the market.

As we continue to work hard on offering users the best rates and the fastest trades, we are thrilled to unveil version 3 of the 1inch Aggregation Protocol, which facilitates lower gas fees.

Lower transaction fees with v3

Transaction fees on Ethereum have risen and stayed high, making it difficult for users to justify regular transactions or smaller denominations of trades, stakes, and more. We’ve always been at the forefront of providing features that the Web3 ecosystem needs, so we built the 1inch Aggregation Protocol v3 to reduce transaction costs.

The main improvement in version 3 is the ability to substantially reduce gas fees thanks to assembly code optimization.

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.

Similarly, an ETH -> USDC -> DAI swap using the 1inch Aggregation Protocol v3 is 10% cheaper than on Uniswap and 3.5% cheaper than on 0x. More comparative data on 1inch v3 vs. Uniswap and 0x is available in this chart:

Lower transaction fees with v3

As you can see, it is now cheaper to swap tokens on 1inch than on Uniswap, as well as other popular protocols. Still, if a swap deal turns out to be more efficient using our traditional split across several paths, the latter is used.

More available liquidity than ever before

Thanks to this upgrade, 1inch aims to further solidify its leading positions in the DeFi space. By swapping tokens on 1inch, users get access to the highest value of liquidity available. As of mid-March 2021, the total value of liquidity available on 1inch was $16.5 bln for Ethereum and another $2.3 bln for Binance Smart Chain.

Lower transaction fees with v3

As always focused on security

1inch is also known as one of the most secure solutions on the market, which is proven by the results of recent security audits.

Getting started with v3

We’re excited to begin immediately offering the benefits of the 1inch Aggregation Protocol v3 to users. The decision to switch between the two protocol versions is up to the user, as it requires new approvals for each asset the user would want to trade and, consequently, additional gas costs. However, the protocol version is now set to v3 by default.

V2 will be deprecated, but we’ll still support it for the immediate future, enabling users to switch between the two versions in the interface.

For more info, please, proceed here.

Enough prefaces, you just need to try v3 with all of its advantages right now!

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