New Pathfinder algorithm delivers up to 6.5% better swap rates for 1inch Swap users and integrators

Thanks to the new price route discovery algorithm, Pathfinder, swap rates are now up to 6.5% better than with the previous algorithm.

1inch Labs has released a new version of Pathfinder, an algorithm designed to find the best token swap routes. By splitting trades across multiple DEXes and leveraging varying market depths within all integrated DEXes and market makers, Pathfinder makes sure that 1inch Swap users and integrators get even more value from their swaps.

The new algorithm finds more efficient paths, consolidates swap steps and maximizes the use of concentrated liquidity faster - making classic swaps even more efficient and profitable, with better gas cost efficiency.

As a result, swap rates are now up to 6.5% better than before - proven by over 30,000 real-time trades conducted in accordance with this methodology.

This table compares rates across the new and previous Pathfinder algorithms, as well as against competitor offerings, for different trade amounts and tokens, displaying improvements in percentage and dollar terms.

As an added benefit, the new Pathfinder improves visualization within the 1inch dApp, allowing users to better understand how their transactions are executed and which tokens are involved. This improvement makes swapping simpler, cheaper and more transparent.

What the new Pathfinder gets you

The new Pathfinder algorithm pushes DeFi trading forward by unlocking smarter, more efficient swaps, and bringing a number of concrete advantages to 1inch Swap users:

• Maximized returns: multiple swap paths are combined to secure the best rates, delivering more value from every trade.
• Superior liquidity efficiency: by splitting volumes into finer chunks and blending paths, Pathfinder taps into pools more effectively, skimming the cream from concentrated liquidity for optimal exchanges.
• Unrivaled access: the new Pathfinder facilitates a deeper dive into diverse liquidity pools, distributing volume to capture better rates where it matters most.
• Gas efficiency: by merging paths to achieve better gas cost efficiency, every swap becomes more cost-effective.

Merging steps

Here’s how the new algorithm optimizes gas usage by merging certain steps in the swap process, producing better swap rates.

Let’s start with an example swap from USDC to APE.

Previously, the algorithm would split the swap across multiple paths:

In this scenario, the same market (e.g., Uniswap v3) couldn't be reused for both paths (ETH → APE), forcing the use of a less profitable market for one of the paths (e.g., Path 2), which resulted in higher gas costs.

With the new algorithm, the intermediate token (ETH) from both paths is merged before proceeding to the final destination:

This eliminates redundant steps, optimizes gas consumption and maximizes rates by using the most profitable market for the merged final path. While this example features the final step, the optimization can apply to any stage of the swap process.

Use 1inch Swap today to take advantage of the new Pathfinder!