1inch Network (1INCH) is a decentralized platform that brings together various protocols to facilitate efficient and secure operations in the decentralized finance (DeFi) space. The network's first protocol is a decentralized exchange (DEX) aggregator that searches across multiple liquidity sources, aiming to provide users with competitive rates. The 1inch Network also includes the 1inch Liquidity Protocol, an automated market maker (AMM) that strives to protect users from front-running attacks and aims to provide opportunities to liquidity providers. The 1INCH token, the network's governance and utility token, allows holders to participate in the network's governance, including treasury management.

1inch Network operates through a series of protocols. The 1inch Aggregation Protocol uses the Pathfinder algorithm to find paths across over 300+ liquidity sources on 10 chains, including Ethereum, BNB Chain, Polygon, Avalanche, and others. This protocol aims to offer users competitive rates by aggregating deals from multiple liquidity sources. The 1inch Liquidity Protocol is an automated market maker (AMM) that strives to protect users from front-running attacks and provide opportunities to liquidity providers. The 1inch Limit Order Protocol facilitates innovative and flexible limit order swap opportunities in DeFi. The 1INCH token allows holders to stake their tokens and participate in the network's governance.

1inch Network aims to contribute to the DeFi space by providing users with competitive, efficient, and protected operations. It aims to offer users competitive rates by aggregating deals from multiple liquidity sources. The network also provides an opportunity for users to participate in its governance through the 1INCH token. Users can stake their tokens, participate in the network's governance, and may receive a part of the fees as compensation. With the 1inch Fusion, users can stake 1INCH tokens and may be compensated with Unicorn Power (UP), which can be delegated to any 1inch Fusion Resolver.

1inch Network was founded by Sergej Kunz and Anton Bukov during the ETHGlobal New York hackathon in May 2019. In just over two years, the 1inch DEX aggregator has reached 1M users and surpassed a significant volume on the Ethereum network alone. In December 2020, 1inch raised funds in Series A funding, led by Pantera Capital, and in December 2021, it closed a Series B round, led by Amber Group. The network has since continued to grow and expand, introducing new features and protocols to enhance its offerings in the DeFi space.

Unlike traditional DEXs that execute transactions within their own liquidity pools, 1inch uses a dynamic "aggregation" protocol to find more advantageous rates across a multitude of DEXs. This means that if one DEX offers a more advantageous rate than another, 1inch intends to route your transaction through the DEX with the more advantageous rate. 1inch also strives to optimize gas fees, which could potentially result in lower transaction costs compared to other DEXs. Another feature of 1inch is its transaction splitting capability. Instead of executing a trade through a single liquidity pool, 1inch can split a trade and route it through multiple liquidity sources, aiming to minimize negative price impact and potentially optimize users' resources. Lastly, 1inch introduces a different swap engine called "Fusion", which aims to prevent front-running attacks and allows users to swap at more advantageous rates without needing native tokens for gas fees.

The 1inch Aggregation Protocol strives to optimize liquidity across various decentralized exchanges (DEXs) by utilizing a smart routing algorithm. This algorithm is designed to identify efficient trading paths across multiple markets in less than a second, taking into account gas costs. The protocol aims to aggregate liquidity from diverse sources, with the goal of improving trading efficiency and reducing slippage. It also has the capability to select an appropriate DEX protocol for a trade, providing users with high flexibility. And, 1inch aims to optimize trades by leveraging multiple liquidity paths, with the intention of reducing transaction costs and enhancing execution speed. The protocol also allows users to adjust their gas levels according to their preferences and market conditions, offering them more control over managing their transaction costs. The 1inch Aggregation Protocol is designed with the aim of providing optimal trade execution by accessing liquidity from various DEX protocols, with the intention that users may receive competitive prices for their assets in the decentralized market.

The 1INCH token has a crucial role within the 1inch Network ecosystem, functioning as both a governance and utility token. As a governance token, 1INCH enables token holders to be part of the network's decision-making process, casting votes on important protocol parameters and changes. This decentralized governance system aims to ensure that the network's evolution is steered by its community. As a utility token, 1INCH is utilized in various ways within the network's protocols. For example, in Fusion mode, it is used by resolvers to gain and prioritize access to swaps execution. 1INCH token holders can allocate their tokens to be part of network governance and participate in the network's gas cost mechanism.

Automated Market Making (AMM) is a decentralized form of exchange mechanism that relies on mathematical formulas to set the price of a token. It allows digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers. 1inch utilizes AMM through its protocol, Mooniswap. Mooniswap is an AMM protocol that redistributes earnings to liquidity pools, capitalizes on user slippages, and protects traders from front-running attacks. It strives to keep most of the slippage revenue in the pool by maintaining virtual balances for different swap directions. When a swap happens, Mooniswap does not automatically apply the invariant algorithm and display the new prices for upcoming trades. Instead, it improves exchange rates for arbitrage traders slowly, over approximately a 5-minute time period. As a result, they will be able to collect only a portion of slippage, while the rest will remain in the pool shared among liquidity providers. This approach strives to foster a competitive environment for arbitrageurs, forcing them to perform trades at less profitable prices, which in turn would contribute to the liquidity providers' efforts.

The platform is a decentralized exchange aggregator that places emphasis on user privacy and security. It employs smart contracts that have undergone audits by multiple independent projects to verify their security. These smart contracts are designed to be unupgradable, meaning no one can access the code or the funds locked within them. This design choice intends to enhance user security. In terms of privacy, the platform does not store any personally identifiable information and ensures that user transactions are pseudonymous. The platform uses standard encryption algorithms to protect user data and employs strict access controls to prevent unauthorized access to sensitive information. The platform uses a parameter called minimum return in its aggregation router smart contract, which seeks to protect users from potential losses due to market fluctuations. The platform intends to integrate with tools for on-chain AML and sanctions risk detection to screen user wallets and limit exposure to risky actors and funds of potentially illicit origin.

The 1inch DEX aggregator platform supports a wide variety of assets, primarily in the form of cryptocurrencies. It strives to provide users with competitive trading rates by scanning multiple decentralized exchanges (DEXs) for competitive asset exchange rates. The platform is connected to over 250 liquidity sources, aiming to provide a broad range of assets for trading. It includes hundreds of tokens across multiple networks, such as Ethereum, BNB Chain, Polygon, Avalanche, Gnosis Chain, Fantom, Optimistic Ethereum (OΞ), Arbitrum, Klaytn, and Aurora. If a user's desired coin is not available, they have the option to manually add a custom token. The platform also includes the 1INCH token, which is utilized within the 1inch ecosystem.

The Pathfinder algorithm is a key feature of 1inch, a decentralized exchange aggregator. It's an advanced discovery and routing algorithm that strives to find efficient paths for a token swap. The algorithm achieves this by integrating individual decentralized exchanges (DEXes) and connecting competitive quotes across them. The Pathfinder algorithm can access multiple liquidity sources on various blockchain networks, enabling it to discover efficient paths for token swaps. It can split swaps between different protocols and even different market depths within one protocol, with the intention of obtaining competitive prices. This algorithm is designed with the aim of providing users with competitive rates on swaps while striving to reduce response time. It's worth noting that the Pathfinder algorithm is part of 1inch's broader strategy to address the user experience in the decentralized finance (DeFi) space.

1inch is a decentralized exchange (DEX) aggregator that interacts with various blockchain networks by using a technology known as cross-chain bridges. These bridges are protocols that facilitate the transfer process of various token types across blockchains, including those built on different technologies like Bitcoin, Ethereum, Litecoin, and Dogecoin. 1inch also interacts with Ethereum Layer 2 (L2) chains such as Arbitrum, Optimism, and Polygon. When tokens are sent between chains over bridges, an equivalent amount of the receiving chain's token is minted, allowing users to move and use these tokens within any protocol and platform that supports that chain. 1inch interacts with nine blockchains, including L2 solutions, in an efficient manner.

The 1inch DAO (Decentralized Autonomous Organization) has a role in the governance of the 1inch Network. It seeks to provide a decentralized platform where 1INCH token holders can participate in decision-making processes. The DAO operates based on smart contracts and uses a voting system to make decisions. These decisions may range from allocating treasury funds for a particular proposal to deploying a new protocol on the 1inch Network. The intended outcome of the 1inch DAO is that the 1inch Network protocols and the 1INCH token aim to be decentralized, owned, and governed by the DAO. This approach seeks to foster transparency, accountability, and community participation in the network's governance.

Liquidity mining is a system where participants contribute cryptocurrency to liquidity pools and may receive non-monetary rewards such as fees and tokens, depending on their proportion of the liquidity in the pool. 1inch facilitates this by having its own liquidity mining programs where users may receive 1INCH tokens by contributing liquidity to specific 1inch pools. Yield farming, on the other hand, is a method to receive non-financial incentives with crypto holdings. It involves contributing funds into liquidity pools to provide liquidity to other users. 1inch supports this by allowing users to contribute liquidity to its pools and potentially receive non-financial rewards. Hence, 1inch is a platform that facilitates liquidity mining and yield farming initiatives.

The 1inch platform has recently undergone several updates that aim to improve user experience and refine its functionality. These include an improved user interface designed to streamline the trading process and make it more user-friendly. The platform has expanded its range of supported tokens and liquidity pools to expand liquidity options. To address concerns about gas fees in the DeFi space, 1inch has implemented optimizations to reduce transaction costs for users. 1inch has integrated Layer 2 scaling solutions that aim to improve transaction throughput and reduce confirmation times. The platform has expanded its decentralized exchange aggregator to include support for more decentralized exchanges, and implemented updated security measures that aim to strengthen its defenses against potential threats. Lastly, 1inch has introduced updated participation programs to foster a vibrant and active community.