With the ongoing DeFi boom, 1Inch is likely to break all records and rally in 2022.
As the value (billions) locked in DeFi increases, more decentralized finance solutions and platforms have risen to meet this demand. The allure of decentralized finance for users is simple: instead of relying on intermediaries to coordinate transactions, DeFi users trust in the integrity of peer-to-peer, decentralized exchanges (DEX).
1inch has positioned itself as a data aggregator of DEXs. Its technology enables the network to provide the best swap prices from various crypto exchanges instantly. Hence, the platform users save time and funds by gaining access to the best DEXs that offer the lowest fees.
1Inch has the potential to be a millionaire-maker, considering the significant growth that the cryptocurrency is predicted to experience over the next couple of years.
1Inch: What Is It?
1inch’s core protocol is a DEX aggregator, designed to be the one-stop platform for traders to access liquidity from various DEXes and liquidity protocols. The aggregator’s Pathfinder algorithm discovers the best swapping route and splits the trade across different exchanges. The result: 1inch can consistently execute the most optimal trade for the user while minimizing price slippage.
As part of their vision to become the single point of entry for DeFi, the 1inch team has expanded their product suite to include a next-generation AMM protocol and native token. Yield farming and lending protocols are on the way.
1inch is unique because it solves one of the biggest problems in the DeFi sector, which is the problem of liquidity. Currently, there are several liquidity sources that traders and investors can use. However, the problem is that prices differ significantly across these sources.
By scouring more than 100 liquidity sources and comparing rates and fees, 1inch helps industry players determine the best place to buy and sell at any given time. As a result, it is the best friend to players heavily invested in arbitrage trading. 1inch is also regarded as the most audited project in decentralized finance (DeFi).
Is 1Inch A Millionaire Maker Investment?
1Inch is a unique DeFi platform. As a DEX aggregator, 1Inch pulls resources from several other DEXs. This way, it groups many large DEXs into a single entity with many headings on its platform. Users can access the liquidity pools of these DEXs from 1inch and view the ones with optimum pricing to secure the best deal on transactions they make. In addition, they can easily split and distribute trading over several exchanges through 1inch to get the best price possible and lower slippage.
The 1inch platform accommodates over 20 liquidity pools, with notable ones being SushiSwap, Kyber, Balancer, Uniswap, and Curve. Additionally, unlike centralized exchanges, 1inch does not hold user funds on its platform as it is non-custodial. That means that every trade you do is straight from your wallets in just one transaction.
Once your wallet is connected to the 1inch platform, you can begin trading tokens at the best market price. Users are also allowed to set up limit orders without any incurred fee. At the same time, they can earn interest on injected liquidity into the pools or lending out cryptos. The addition of the 1INCH token as the native token to the platform and the introduction of liquidity pools now means that users can stake their tokens to earn rewards paid in the protocol native token. For all these reasons, 1Inch is ready for a bull rally soon.
Don't Miss: Is It Worth Investing In 1INCH?
Factors That Could Make 1Inch A Millionaire Maker
1. Trading Benefits
1Inch is a genuinely unique DeFi platform, making it an excellent investment option.
1Inch offers one of the best trade rates out there. The protocol can check prices across multiple decentralized exchanges, and it supports DEXs across the Ethereum, Binance Smart Chain, and Polygon blockchains. In this way, 1inch Network users always receive the best rate for a swap.
1inch also introduced an Ethereum Gas Fee-pegged token called Chi to provide users with lower fees. As a result, 1inch Network users pay around 40% less than Ethereum fees on average.
The technical structure of the 1inch protocol also provides a high degree of security to users. For example, insecure liquidity sources can connect to the 1inch Aggregation Protocol without users risking the loss of funds. Furthermore, the protocol integrates security checks during every transaction to prevent any losses.
2. Governance and Rewards
1Inch’s unique technical abilities make it a must-buy crypto asset.
One aspect that 1inch does differently from other DeFis is the governance model adopted by the protocol. Most Defi protocols lack a governance model adept at responding and adopting changes on the protocol swiftly to match the fast-moving market. To counter this, 1inch adopted an instant governance model where participants can vote on protocol measures without any barrier to entry. This is done under the decentralized autonomous organization (DAO) transparently and efficiently for token holders. Under this governance model, each vote counts.
The native token 1INCH serves both the present and future protocols that could launch within 1inch. In addition, the liquidity protocol governance features the price impact fee, which is a fee that accumulates as a result of price slippage. This fee is paid as a reward to stakers and liquidity providers, and it allows stakeholders to earn a substantial amount on the protocol due to volatility.
The network’s governance mechanism determines the weight of your vote based on the amount of 1inch you hold in a network wallet or have staked. The system employs a DAO protocol to provide decentralized management to the network.
Liquidity providers and stakers have a say on key parameters on the protocols such as referral reward, price impact fee, governance reward, and swap fee. This is all done through voting using the token.
3. Unique Features
Consider investing in 1Inch, one of the fastest-growing DeFi protocols in the market.
The Liquidity Protocol is a key DeFi feature available to users. This system enables decentralized token swaps. Notably, the primary way to earn 1INCH tokens is by providing liquidity to 1inch’s liquidity protocol.
Farming is another cool DeFi feature that 1inch Network users can access. Many investors prefer farming over staking because there are no required lockup periods or early withdrawal penalties. In this way, you can access your tokens if you need them without fear of losing rewards due to penalties.
4. 1Inch Token
Investing in 1Inch is a quick way to become a part of the growing 1Inch ecosystem.
1inch is the main governance token for the network. It was launched in December 2020. Today, the coin is top-rated. It is available on several major cryptocurrency exchanges. Some notable daily trading volumes occur on Binance, KuCoin, Huobi Global, FTX, and OKEx.
Chi Gas is a network token used to power 1inch transactions. It is pegged to the Ethereum network’s gas price. However, it is only minted when the gas price is low and burnt when it is high. This strategy provides significant savings to all users.
Read Also: Will 1inch Make Me Rich In 10 Years?
1inch is unquestionably playing a vital role in decentralized finance. It is helping millions of online traders discover the best trade prices for all kinds of tokens.
The platform enables regular users to secure passive incomes, save on trades, and find the best rates possible. In addition, the developers continually upgrade the network to incorporate new features and services. For these reasons, 1inch is likely to remain a premier option for DeFi users moving forward and become a millionaire-maker coin.
That said, cryptocurrencies are volatile. Therefore, investors must be careful and perform due research before investing hard-earned savings in them.