What Is 1inch Network? The Most Detailed Guide to 1INCH Crypto

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The decentralized finance (DeFi) space continues to evolve rapidly, with innovative platforms enhancing accessibility, efficiency, and user control. Among these, 1inch Network stands out as a powerful force in optimizing crypto trading across multiple blockchains. This comprehensive guide dives into everything you need to know about 1inch, its ecosystem, governance model, and the role of the 1INCH token, while maintaining clarity and SEO-friendly structure.

What Is 1inch?

1inch is a leading decentralized exchange (DEX) aggregator designed to maximize trading efficiency by sourcing liquidity from multiple decentralized exchanges. Launched during the ETHGlobal New York hackathon in May 2019 with its Aggregation Protocol v1, 1inch has since expanded into a full DeFi suite offering advanced trading tools and cross-chain functionality.

By leveraging smart routing algorithms, 1inch ensures users receive the best possible swap rates while minimizing slippage and gas costs. Today, the platform operates across most EVM-compatible blockchains, including Ethereum, BNB Chain, Polygon, Arbitrum, Optimism, Avalanche, Fantom, and Gnosis Chain, making it a truly multi-chain solution.

👉 Discover how top DeFi platforms integrate with major ecosystems for seamless trading experiences.

Core Products of 1inch Network

1inch dApp

The 1inch decentralized application (dApp) connects directly to supported blockchains via smart contracts. It gives users access to aggregated liquidity pools and competitive swap rates across numerous DEXs. Unique features include real-time price optimization and gas-efficient transaction routing.

Aggregation Protocol

At the heart of 1inch’s technology is the Aggregation Protocol, powered by the advanced Pathfinder algorithm (API v4). This system scans dozens of liquidity sources—such as Uniswap, SushiSwap, and Curve—to identify optimal swap paths. It can split large trades across multiple protocols to reduce price impact and improve execution quality.

Liquidity Protocol

Formerly known as Mooniswap, the Liquidity Protocol is an automated market maker (AMM) that enhances capital efficiency for liquidity providers (LPs). It introduces time-weighted pricing mechanisms to protect against front-running attacks—a common issue in traditional AMMs—making it safer and more profitable for LPs.

Limit Order Protocol

The Limit Order Protocol enables users to place limit orders and RFQ (Request for Quote) orders off-chain, which are then executed on-chain. These orders are structured using EIP-712 signatures, ensuring security and flexibility. This feature brings centralized exchange-like functionality to DeFi with high gas efficiency.

Peer-to-Peer (P2P) Transactions

1inch supports direct peer-to-peer swaps for any ERC-20 token. This allows two parties to trade privately without relying on public order books or liquidity pools, increasing privacy and reducing exposure to market volatility during large transactions.

1inch Mobile Wallet

The 1inch Wallet is a non-custodial crypto wallet available on both Android and iOS. It combines secure self-custody with access to the best available swap rates across DeFi platforms. The wallet supports multi-chain assets and integrates seamlessly with dApps, offering a user-friendly gateway into decentralized finance.

Governance Structure: How 1inch Is Managed

1inch operates under a decentralized governance model composed of three key entities working together to guide the network’s development:

1inch Foundation

An independent non-profit organization focused on promoting the growth and decentralization of the 1inch ecosystem. While it initially launched the 1INCH token, control over the token contract now resides with the DAO. The foundation manages:

Its primary mission is to expand community participation and ensure long-term sustainability.

1inch Core Contributors

This group includes developers and technical teams actively building and maintaining the platform. The main contributor is 1inch Labs, responsible for:

These contributors play a critical technical role but do not hold governance authority.

1inch DAO

The Decentralized Autonomous Organization (DAO) governs key aspects of the network through on-chain voting using the 1INCH token. Major responsibilities include:

This structure ensures that power remains in the hands of token holders, aligning with true decentralization principles.

What Is the 1INCH Token?

The 1INCH token is a utility and governance token central to the network’s ecosystem. It empowers users to participate in decision-making while also providing tangible benefits within the platform.

Key Use Cases of 1INCH Token

1INCH Token Overview

All tokens were distributed by 2023, with no further minting planned.

Token Distribution Breakdown

The initial allocation of 1INCH tokens was designed to reward early supporters and sustain long-term development:

This distribution emphasizes community ownership and sustainable growth.

Where to Store 1INCH Tokens?

As an ERC-20 token, 1INCH is compatible with all Ethereum-based wallets:

For active traders, integrating with the official 1inch Mobile Wallet offers seamless swapping and enhanced rate discovery.

👉 Learn how secure wallet integration enhances DeFi trading performance.

How to Buy and Earn 1INCH Tokens?

There are two primary ways to acquire 1INCH:

Buy Directly on Exchanges

1INCH is listed on major exchanges such as Binance, Coinbase, Kraken, KuCoin, Huobi Global, Gemini, and Uniswap, with daily trading volume consistently exceeding $50 million.

Earn Through Participation

Users can earn 1INCH by:

Staking programs often offer additional rewards, encouraging long-term holding.

Funding and Investor Backing

In December 2021, 1inch raised $175 million in a Series B funding round led by prominent institutions including:

This strategic investment accelerated product development and expanded the platform’s global footprint.

Frequently Asked Questions (FAQ)

Q: Is 1inch a decentralized exchange?
A: No—1inch is a DEX aggregator. It pulls liquidity from various decentralized exchanges like Uniswap and SushiSwap to find users the best possible prices.

Q: Can I use 1inch on blockchains other than Ethereum?
A: Yes! 1inch supports multiple EVM-compatible chains including BNB Chain, Polygon, Arbitrum, Optimism, Avalanche, Fantom, and Gnosis Chain.

Q: Do I need to pay fees to use 1inch?
A: Yes—users pay standard network gas fees. However, those staking 1INCH tokens may qualify for partial gas rebates.

Q: How does the Limit Order Protocol work?
A: It allows users to create off-chain limit orders signed via EIP-712. These are executed on-chain when market conditions match the set price.

Q: Who controls the 1INCH token?
A: Governance is managed by the 1inch DAO, where token holders vote on proposals. No single entity controls the network.

Q: Is the 1inch Wallet safe to use?
A: Yes—the wallet is non-custodial, meaning only you control your private keys. Always download it from official sources to avoid phishing scams.

Final Thoughts

Since its debut in 2019, 1inch Network has evolved into one of DeFi’s most robust trading infrastructures. With its intelligent routing engine, multi-chain presence, and strong community-driven governance, it continues to push the boundaries of what decentralized trading can achieve.

Whether you're swapping tokens efficiently or participating in governance with your 1INCH holdings, the platform offers both utility and empowerment in one integrated ecosystem.

👉 See how leading DeFi innovators are shaping the future of finance today.