It's only been two years since its founding, but decentralized exchange (DEX) 1inch Network has already exceeded $ 85.8 billion in cumulative trading volume. At a May 2019 hackathon in New York City, 1-inch co-founders Anton Bukov and Sergej Kunz developed a DEX aggregator prototype that became the foundation of the network. DEX aggregators are platforms that derive liquidity from multiple DEXs, providing better token exchange rates with less slippage.
The network has a 57.40% market share in the DEX aggregator industry and more than 820,000 users. According to CoinMarketCap, 1inch Exchange is the eighth largest DEX in the world, with a trading volume of $ 277 million in the last 24 hours.
On Monday, Bukov joined the Cointelegraph Markets Pro community for an exclusive `` ask me anything '' session on Discord.
Cointelegraph Markets Pro: Do you think DEXs will serve the majority of crypto users, or will that segment be dominated by algos and bot trading?
Anton Bukov: I think that in the next three to five years, the DeFi industry will grow tremendously. It is already growing rapidly, but the benefits of peer-to-peer technologies can and will be more widely experienced.
Of course, for the DEX to dominate over the CEX [Centralized Exchanges], certain conditions must be met in the future. The DEX and blockchain protocols have to work 100 times faster than now. Users must understand the core concept of the technology. User trips should be shortened and more beginner-friendly.
The 1-inch network is a collection of robust and composable DeFi instruments, which together allow both veteran and new DeFi users to maximize the financial opportunity of Web3 with a clean user experience and secure contracts.
CT Markets Pro: What makes 1 inch stand out from the crowd?
FAR: 1 inch aims to benefit the entire DeFi space. And we work hard and fast to achieve our mission. Our goal is to unite merchants and liquidity providers, facilitating transactions that are profitable for both parties. The main functionality of 1 inch is to aggregate data from various decentralized exchanges and combine the best prices of all the offers with the necessary liquidity. In April 2021, we launched the 1-inch iOS wallet, a multi-chain mobile platform that provides an easy-to-navigate interface with secure storage, transaction and participation capabilities. This versatile wallet was built from the ground up to simplify interaction with 1-inch features.
CT Markets Professional User: As a DEX aggregator, is there a plan to mitigate the number of fees currently on the entire network at this time? What are the plans for the future of 1-inch?
FAR: Sure, recently 1inch Foundation settled down a program to reimburse gas costs for 1-inch users.
FAR: High benefits are often associated with high risks. Users deposit more coins; this certainly reduces your earnings.
CT Markets Pro: The Binance exchange has a large 1 INCH share, which accounts for 44% of the government votes. How does 1inc try to overcome that?
FAR: Binance is betting on behalf of its users; Binance never voted and will not vote, AFAIK.
CT Markets Pro: How does 1 inch solve bots running up front?
FAR: The 1-inch Liquidity Protocol has a unique feature that helps protect users from these types of attacks, ensuring that users get the most out of every trade. To deter leaders from such attacks, the 1-inch Liquidity Protocol actually has "virtual fees"; you can check this Article for details.
CT Markets Pro: How difficult will it be to migrate 1 inch to Eth2? Will each liquidity provider be required to change its position?
FAR: No DeFi developer should expect or prepare for ETH 2.0. DeFi scaling will occur through L2; ETH 2.0's fragmented environment doesn't make sense for DeFi.
I consider ZK Rollups to be a true scaling solution because the complexity of the ZK transaction verification is fixed and does not depend on the complexity of the transaction itself. It sounds like magic, but it is like that ^^.
CT Markets Professional User: Any plan for multi-chain transactions / exchanges? Bridges, etc.
FAR: I recently had an exciting Twitter thread about the future of 1 inch cross chain; please take a look:
1 / In the last few months, I've been asked a lot about a cross-chain future for @1 inch. Dozens of projects are actively working on bridges, and some of them have applied for 1-inch grants or have simply asked for my advice / opinion. This thread reveals my thoughts on the subject. https://t.co/25Rgy5cYok
- Anton Bukov ⚖️ (@ k06a) October 25, 2021
CT Markets Professional User: What do you think of Uniswap v3?
FAR: They dramatically increase the capital efficiency of their groups. This is the ultimate solution for LPs (liquidity providers). But I see that traders have really bad exchange rates and big slippages on Uniswap. I'm going to do a DuneAnalytics panel on this. Using aggregators should be a no-brainer for everyone because 1 inch integrated more than 80 sources on the Ethereum mainnet alone.
CT Markets Professional User: Apart from 1 inch. Do you have any participation in other projects?
FAR: Only advise / consult on some projects. But working full time on the next big thing in 1 inch.
CT Markets Professional User: Building a DEX aggregator seems like an incredibly complex thing to do. Do you use a single oracle as a price source or is there another way to calculate the price?
FAR: We have our own off the chain oracle to get chain prices.
CT Markets Professional User: How has the explosion in gas tariffs affected the 1-inch trade?
FAR: You can set a new phrase or enter just your wallet address to test it in read-only mode. Since it's Wallet, you just can't create transactions and produce signatures without a leading private key / phrase.
CT Markets Professional User: How are you working with layer two solutions to make 1 inch practical for smaller businesses? Do you have a preferred technology? Sidechain, Optimistic, rollup, ZK rollup, something else you've never heard of?
FAR: Personally, I prefer ZK rollup packs, awaiting Matter Labs' ZKSync 2.0. But sure 1 inch will support popular / major sidechains or L2s that have: users / tokens / DEXes / activity.
CT Markets Professional User: With hardware, there are currently some solutions to connect to DEX by connecting Metamask to hardware and then to DEX. Do you think we can get a direct connection to the hardware without any middleware?
FAR: You can use a hardware wallet through the WalletConnect protocol, even on a mobile phone using the Ledger Live app. Take a look at our cool open source board.
CT Markets Pro: What are some of the recent innovations or exciting development surrounding the 1inch network?
FAR: We are working hard to deliver a protocol sooner, also building 1 inch for institutions: 1 inch Pro.
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