What Is the 1inch Decentralized Exchange? A Beginner's Guide

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The 1inch Exchange is one of many decentralized exchanges (DEX) making the DeFi ecosystem more accessible to the average cryptocurrency trader. By using DEX platforms, traders avoid relying on third-party custodians or questioning service security. Additionally, 1inch expands the possibilities offered by other DEXs, providing the most cost-effective trading routes.


Key Topics Covered:


Evolution of the 1inch Exchange

Founded in March 2019 by Russian developers Sergej Kunz and Anton Bukov, 1inch began as a project auditing Ethereum smart contracts. The MVP was launched during the ETHNewYork hackathon, aggregating liquidity from Uniswap, Bancor, and Kyber Network.

Key Milestones:


How Does the 1inch Exchange Work?

1inch combines two core functions:

  1. DEX Platform: Facilitates crypto swaps like Uniswap.
  2. DEX Aggregator: Scans multiple DEXs for optimal prices, splitting trades across platforms to minimize slippage and fees.

Features:

👉 Discover the best DeFi trading routes


Competitor Comparison

| Platform | Key Differentiators | Fees |
|----------------|---------------------------------------------|--------------|
| 1inch | Zero service fees, multi-chain support | Gas only |
| 0x | Charges service fees | Variable |
| Orion Protocol | Operates on Ethereum/BSC | Gas + token |


What Is the 1INCH Token?

Utility:

Tokenomics:


FAQs

How do I reduce gas fees on 1inch?

Use Chi Gastoken (CHI) to lock in low gas rates during network congestion.

Is 1inch safer than centralized exchanges?

Yes—users retain full custody of funds, eliminating third-party risks.

Can I stake 1INCH for rewards?

Staking grants voting rights but currently offers no additional rewards.


Final Thoughts

1inch’s innovative aggregation model positions it as a leader in DeFi, offering unmatched liquidity and cost efficiency. For traders prioritizing security and optimal pricing, 1inch is a compelling choice.

👉 Start trading on 1inch today


Disclaimer: This content is for educational purposes only. Conduct independent research before investing.