The decentralized finance (DeFi) ecosystem continues to evolve rapidly, and 1inch is reinforcing its position at the forefront with the launch of a new liquidity mining program. This initiative coincides with a critical upgrade to the 1inch Liquidity Protocol, now moving to version 1.1, which introduces key improvements to governance mechanisms and overall protocol reliability.
This strategic update ensures greater transparency and accuracy in DAO governance, addressing a minor irregularity discovered in the previous version that could have affected vote counting. With version 1.1, all governance decisions will now be processed with enhanced integrity, reinforcing trust among token holders and liquidity providers.
New Liquidity Mining Program: Key Details
Starting on January 9 at 00:00 UTC, the new liquidity mining program will distribute an additional 1% of the total 1INCH token supply—equivalent to millions of tokens—across five carefully selected liquidity pools. These pools will receive equal shares of the rewards, promoting balanced participation and ecosystem growth.
The following pools are included in this round of incentives:
- ETH-1INCH
- ETH-DAI
- ETH-USDC
- ETH-USDT
- ETH-WBTC
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The program will run for one month, offering participants a compelling opportunity to earn high yields through active liquidity provision. This follows the successful conclusion of 1inch’s previous liquidity mining initiative, which saw participants claim approximately 7.5 million 1INCH tokens, translating to an impressive average annual percentage yield (APY) of 300%.
In parallel, ongoing governance reward distributions have already paid out around 632,000 1INCH tokens over the past two weeks, further incentivizing community engagement and decentralized decision-making.
Protocol Upgrade: Why Version 1.1 Matters
The transition to 1inch Liquidity Protocol v1.1 isn’t just about rewards—it's about building a more robust and secure foundation for future growth. The core improvement lies in the correction of a technical flaw related to vote aggregation within the DAO framework. While the issue was minor and did not result in any malicious exploitation, proactively resolving it strengthens the protocol’s long-term viability.
Additionally, v1.1 introduces new liquidity pools and updated smart contracts tailored for the latest mining program. As a result, users must migrate their assets from the legacy system to participate in the new incentives.
How to Migrate Your Liquidity
To ensure seamless participation in the upgraded protocol, users need to complete a straightforward migration process. Here’s what you need to do:
Step 1: Withdraw from the Old Program
If you’re currently staking LP tokens in the previous liquidity mining program, you must first exit it. Use the following functions in the interface:
- Deposit: Stake LP tokens earned from providing liquidity.
- Claim: Receive your accrued 1INCH rewards.
- Withdraw: Remove part or all of your LP tokens without claiming rewards.
- Exit: Exit completely by withdrawing your LP tokens and claiming rewards in one transaction.
Once you’ve withdrawn your LP tokens, you’re ready for migration.
Step 2: Use Migrators to Upgrade to v1.1
1inch provides specialized tools called migrators—essentially smart contract gateways—that allow users to upgrade their LP positions in a single swap-like transaction.
To migrate:
- Go to the 1inch Swap interface.
- In the “You Pay” field, select Liquidity Pool v1.0 of your chosen pool (e.g., ETH-USDC v1.0).
- In the “You Receive” field, select Liquidity Pool v1.1 of the same pool.
- Confirm the transaction, ensuring you have sufficient ETH to cover gas fees.
- Click Swap—this executes the migration.
This streamlined process minimizes complexity and reduces the number of transactions required, lowering both risk and cost for users.
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Migrators are also available for users coming from other protocols:
- Mooniswap
- Uniswap V2
- SushiSwap
This cross-protocol compatibility lowers barriers to entry and encourages broader participation in the 1inch ecosystem.
Core Keywords Driving This Update
Understanding the key concepts behind this release helps both new and experienced DeFi users navigate the changes effectively. The core keywords embedded throughout this update include:
- Liquidity mining
- 1INCH token
- DAO governance
- DeFi yield farming
- Smart contract upgrade
- LP token migration
- Decentralized exchange (DEX)
- Protocol security
These terms reflect not only the technical aspects but also the user-centric goals of transparency, accessibility, and reward optimization.
Frequently Asked Questions (FAQ)
Q: When does the new liquidity mining program start?
A: The program begins on January 9 at 00:00 UTC and will run for one full month.
Q: How much of the 1INCH token supply is being distributed?
A: An additional 1% of the total 1INCH supply will be distributed equally among the five participating pools.
Q: Do I need to migrate even if I’m already providing liquidity?
A: Yes. All users must withdraw their LP tokens from v1.0 and migrate them to v1.1 using the migrator tool to qualify for new rewards.
Q: Can I migrate directly from Uniswap or SushiSwap?
A: Yes. Dedicated migrators allow direct transfers from Uniswap V2, SushiSwap, and Mooniswap into 1inch Liquidity Protocol v1.1.
Q: Were any funds at risk due to the governance irregularity?
A: No. The issue was related to vote counting accuracy and did not compromise user funds or enable unauthorized access.
Q: Is there a deadline for migration?
A: While there’s no strict deadline, only those who migrate before or during the mining period can earn rewards under the new program.
Looking Ahead: Strengthening DeFi Participation
By aligning protocol upgrades with fresh incentive programs, 1inch demonstrates a deep understanding of what drives sustainable DeFi growth: security, fairness, and continuous innovation. The shift to v1.1 ensures that governance remains trustworthy, while the new mining rewards attract both new liquidity and renewed interest from existing participants.
As the DeFi space becomes increasingly competitive, initiatives like this reinforce why protocols with strong technical foundations and active communities continue to lead the market.