The current price of 1inch Network (1INCH) is $0.1768 USD, with a 24-hour trading volume of $17.29 million. Over the past 24 hours, 1INCH has seen a price change of +0.00%, indicating stable market activity. The circulating supply stands at 1.39 billion 1INCH tokens, out of a maximum total supply of 1.5 billion, suggesting the token is nearing its issuance cap.
As one of the leading decentralized finance (DeFi) protocols, 1inch Network continues to play a pivotal role in optimizing user experience across blockchain ecosystems. This article explores the technology, history, tokenomics, and unique features that make 1inch a cornerstone in the evolving Web3 landscape.
What Is 1inch Network?
1inch Network is a decentralized protocol designed to streamline and enhance crypto trading across multiple blockchains. By aggregating liquidity from hundreds of sources, it enables users to execute fast, secure, and cost-efficient transactions in the decentralized ecosystem.
At its core, 1inch combines several key components:
- 1inch Aggregation Protocol: Finds optimal swap routes across multiple decentralized exchanges (DEXs).
- 1inch Liquidity Protocol: Enables users to provide liquidity and earn rewards.
- 1inch Limit Order Protocol: Allows users to set custom price conditions for token swaps.
- 1inch Wallet: A mobile application offering secure storage, sending, receiving, and swapping of crypto assets.
These tools work together to deliver a seamless experience for both novice and advanced DeFi users.
How the 1inch Swap Engine Works
The heart of 1inch Network is its Swap Engine, a decentralized matching system that connects users to vast pools of liquidity. Unlike traditional DEX aggregators, 1inch doesn’t just compare prices — it splits trades across multiple platforms to ensure users get the best possible rates with minimal slippage.
One of the standout innovations is the use of Dutch Auctions for trade execution. In this model, prices start high and gradually decrease until a match is found. This approach offers greater flexibility and efficiency compared to standard limit or market orders, especially during volatile market conditions.
Additionally, the Swap Engine powers Fusion Mode, a feature that allows users to swap tokens without paying gas fees while securing the most favorable exchange rates. This is particularly beneficial on high-fee networks like Ethereum, where transaction costs can often outweigh trade value for smaller investors.
Understanding Fusion Mode and MEV Protection
Fusion Mode represents a significant leap forward in user protection and cost reduction. Instead of executing swaps directly on-chain, Fusion Mode routes transactions through professional traders known as solvers. These solvers compete to fulfill user orders using sophisticated strategies that minimize losses from Maximal Extractable Value (MEV) — a common issue in DeFi where miners or bots exploit transaction ordering for profit.
By leveraging off-chain coordination and incentive-aligned solvers, Fusion Mode effectively shields retail traders from front-running and sandwich attacks. Every swap in Fusion Mode is optimized not only for price but also for security, making it one of the safest ways to trade in decentralized environments.
This level of protection is increasingly important as DeFi adoption grows and malicious actors become more sophisticated.
The Origins of 1inch Network
1inch Network was born at the ETHGlobal hackathon in New York in May 2019. Founders Sergej Kunz and Anton Bukov identified a critical pain point in early DeFi: users had to manually check multiple DEXs like Uniswap, Kyber, and Balancer to find the best swap rates — a time-consuming and inefficient process.
In just 36 hours, they built a working prototype of a DEX aggregator that automatically scanned available liquidity and calculated optimal trade paths. Their solution won the hackathon and quickly gained traction within the Ethereum community.
What started as a simple tool evolved into a full-fledged protocol. Today, 1inch supports numerous blockchains including Ethereum, Binance Smart Chain, Polygon, Arbitrum, Optimism, and others — making cross-chain trading more accessible than ever.
Tokenomics of 1INCH
The 1INCH token was launched in December 2020 by the 1inch Foundation and serves dual roles as a governance and utility token within the ecosystem.
Key functions include:
- Governance Participation: Token holders can stake their 1INCH to vote on proposals in the 1inch DAO (Decentralized Autonomous Organization), influencing protocol upgrades and treasury allocations.
- Unicorn Power (UP) Rewards: Following the Fusion upgrade in December 2022, staking 1INCH grants users Unicorn Power — a reputation metric used to delegate voting power to solvers in the Fusion system.
- Solver Incentives: Users who delegate their UP to top-performing solvers can earn additional rewards based on solver performance.
With a maximum supply capped at 1.5 billion tokens, and over 90% already in circulation, scarcity may become an increasing factor in long-term valuation as demand grows.
👉 Learn how staking and governance participation can enhance your DeFi returns.
Why 1inch Stands Out in DeFi
While many DEX aggregators exist today, 1inch differentiates itself through:
- Advanced Routing Algorithms: Maximizes returns by splitting trades across multiple venues.
- Multi-Chain Support: Operates across major EVM-compatible chains and Layer 2 solutions.
- User-Centric Innovation: Features like gas-free swaps and MEV protection prioritize user experience.
- Strong Security Model: Regular audits, open-source code, and community-driven development ensure trust and transparency.
Moreover, the integration of limit orders and Fusion Mode gives traders tools typically found only in centralized exchanges — but without sacrificing decentralization.
Future Outlook for 1inch Network
As Web3 adoption accelerates, protocols like 1inch are positioned to become essential infrastructure for seamless digital asset interaction. With ongoing developments in cross-chain interoperability, privacy enhancements, and solver economy expansion, 1inch is actively shaping the next generation of decentralized trading.
Its focus on solving real-world problems — such as high gas fees, poor execution, and MEV exploitation — ensures continued relevance even as new competitors emerge.
Frequently Asked Questions (FAQ)
Q: What is the primary purpose of the 1inch Network?
A: 1inch Network optimizes decentralized trading by aggregating liquidity from multiple sources across various blockchains, helping users get better prices and lower slippage when swapping tokens.
Q: Can I stake 1INCH tokens?
A: Yes. You can stake 1INCH tokens to participate in governance and earn Unicorn Power (UP), which can be delegated to solvers in Fusion Mode for additional rewards.
Q: Does 1inch charge trading fees?
A: 1inch does not impose direct trading fees. However, users pay standard network gas fees unless using Fusion Mode, which offers gas-free swaps under certain conditions.
Q: Is the 1inch Wallet safe to use?
A: Yes. The 1inch Wallet is a non-custodial mobile app that gives users full control over their private keys. It includes security features like biometric authentication and transaction simulation to prevent errors.
Q: How does Fusion Mode eliminate gas fees?
A: Fusion Mode batches user transactions off-chain and executes them through solvers who pay the gas. In return, solvers earn part of the spread or receive rewards from the protocol.
Q: On which blockchains does 1inch operate?
A: 1inch supports Ethereum, BNB Chain, Polygon, Arbitrum, Optimism, Avalanche, Gnosis Chain, and several other EVM-compatible networks.
👉 Start exploring decentralized trading with powerful tools that put you in control.