Cryptocurrency 1inch: history of development, features and tokenomics of 1INCH

What is 1inch?

1INCH is an aggregator of decentralized exchanges, combining large DAX exchanges into one network with liquidity and prices in order to provide its customers with the most favorable exchange rates and conditions. In other words, the user no longer needs to search for many exchanges and compare rates for swaps manually, the aggregator will do everything for him, offering the most effective option.

Using 1inch, transactions in the system can be distributed among exchanges, thus minimising slippage (the difference between the price with that you wanted to start trading and the one with it actually opened) and as a result, get the best price. In addition, absolutely all transactions are made using an Ethereum - based wallet in the same transaction.

As of June 2021, the aggregator provides users with access to more than 50 sources of ETH liquidity, another 20 in Binance Smart Chain, and 8 in Polygon. The list of those decentralized exchanges that power 1inch includes Uniswap, 0x and Balancer, as well as 1inch's personal network liquidity protocol, which in the earlier period was popular under the name Mooniswap.

The history of Development  of 1inch

1inch begins its history with the 2019 ETHNewYork hackathon. The founders of the project are two white hackers - Sergey Kunz and Anton Bukov, whose friendship began with a meeting on the air of Sergey's YouTube channel. After that, the guys participated in many hackathons, constantly winning valuable prizes, including an award from Ethereum Global. Sergey and Anton have been interested in cryptocurrencies for a long time and partly worked in this area. But, like other crypto owners, they were annoyed by the constant search for a profitable trading rate, they constantly had to flip through dozens of DEXs to find what was most suitable for them to place their offer. Hence the idea to come up with their own trading strategy and a project that will satisfy all their needs, as well as save a lot of users from constant searches for the most profitable exchange rates.

The 1inch project finally launched in August 2020, raising $2.8 million in funding from companies such as Binance Labs, Galaxy Digital, Greenfield One, Libertus Capital, Dragonfly Capital, FTX, IOSG, LAUNCHub Ventures, and Divergence Ventures.

Token 1INCH

Launched in August 2020, 1INCH is:

• Utility token - acts as a connecting mechanism in the Liquidity Protocol.
• Management role - used to oversee protocols that already exist, and will also perform a management function for all new protocols. Now it is used in Aggregation and Liquidity protocols.
• Multi-Grid Token - The token is available on Ethereum and BNB Chain (BSC).

On the launch day, only 6% of the total supply of 1INCH was unlocked, which is equal to 1.5 billion. The rest of the tokens will be gradually unlocked - over 4 years, the end date is December 30, 2024.

The distribution of tokens should be something like this:

• 30% - to stimulate the community;
• 22.5% - to the main participants of the system and the future, which can be attracted during these 4 years;
• 18.5% - to investors with a validity period of 2.5 years;
• 14.5% is the growth and development fund, in particular, these funds will be used to reward new developers, issue some grants, as well as to pay users in force majeure situations;
• 12.2% - consultants with a four-year vesting;
• 2.3% to Mooniswap liquidity providers with 1 year eligibility.

1inch Wallet

The 1inch Network company created and launched its own cryptocurrency wallet 1inch Wallet, it has a built-in DEX aggregator under the hood, which allows you to store your assets in a safe place and conduct transactions in various networks.

With 1inch Wallet, each user can:

• buy crypto with a bank card using fiat gateways of 1inch network partners;
• store crypto assets in a safe place;
• send crypto coins through a large number of blockchain networks;
• exchange operations are carried out in the volume that is necessary, at the most favourable rate;
• staking - users can convert their 1INCH assets into staking, thus they get the opportunity to participate in the management of the network, as well as return gas fees;
• without closing your 1inch Wallet, you can access a variety of DeFi protocols thanks to the browser that is built into the application itself;
• there is a DeFi Racer game in the wallet, so you can take a break and play a little retro racing;
• there is also a function for storing and later sending NFTs.

How does 1inch Wallet differ from other crypto wallets?

1. All transactions in the system are protected by Secure Enclave technology, which is enabled by default for each user. The wallet constantly correlates call data, showing the current situation in a user-friendly format. 
2. Easily move wallets by scanning your private key or seed using your smartphone camera. This feature of the wallet is performed using AI (artificial intelligence).
3. The ability to backup to Apple iCloud - so each user can install 1inch Wallet on any other device, use their personal password to log in, as a result gaining access to the crypto wallet through iCloud.

Where to buy/sell 1inch

Now you can buy 1inch on several cryptocurrency exchanges, such as Binance, Huobi Global, Uniswap and 1inch. Also, the token can be purchased or sold for fiat money or in exchange for another cryptocurrency on online exchangers. Here you can use the services of our crypto exchange Coin24.io. However, cryptocurrency is one of those industries where changes are happening every minute, so new ways to buy and sell 1inch may already have appeared while you were reading this article.

Outlook and forecasts

Perhaps, 1inch can be considered a fairly successful project that solves a significant problem of decentralized exchanges, namely liquidity, providing it through the process of aggregation of many DEXs. Thanks to 1inch, users can get data on the best rates on all DEXs in one place, without wasting their time manually searching for this information, which saves time. With this uniqueness, the 1inch network has gained the trust of many users.

Of course, the future of the project directly depends on the development of DeFi. Decentralized exchanges are still inferior to centralized ones, such as Binance: they are several times slower, more expensive and quite insignificant in quantity. But, there is a big plus in DEX — they are developing and gaining momentum against the background of the downtime of centralized exchanges, when there is a large volatility of the cryptocurrency exchange rate.