Decentralized exchanges are crypto exchanges that do not need to be governed by a third party. Anyone can trade on DEX, with only the need to link their wallets. Uniswap, SushiSwap, and PancakeSwap are a few examples. However, these exchanges sell cryptocurrencies at slightly varying prices. As a result, Ethereum may sell for different prices on different DEXes; each platform charges a different fee. So to get the best pricing from all DEXes, we need 1inch. In this article, we will get a complete understanding of 1inch.
What is 1inch?1inch is a DEX aggregator that connects many DEXes into a single platform, allowing users to locate the most economical exchanging routes across all platforms.
Why do we need a DEX aggregator?
Working of DEX Aggregator:
DEX aggregators operate by getting liquidity from many DExs, allowing them to provide customers with better token exchange rates than they could obtain on anyone DEX in the shortest amount of time.
Visit 1inch 1inch Timeline 2019We're excited to announce that xBTC has entered into an official partnership with @1inchExchange & @mooniswap, for their first all exclusive launch, ever!
It's safe to say that xBTC is now 1inch closer to the moon! ????
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In this section, we will understand how to 1inch works.
Step 1: BeginningSuppose we want to purchase some crypto X on a DEX using Ethereum. Then, we have to look at other DEXes; we will see that the rates and fees vary on different DEXes.
Visit 1inch Step 2: Algorithm1inch makes this easy. 1inch’s algorithm determines the cheapest way from all of the available exchanges and liquidity protocols.
Step 3: ConclusionNow we can purchase the Crypto X from the best deal from a 1inch interface.
What is the difference b/w Simple Mode and Classic Mode?Simple Mode
Classic Mode
In this section, we will understand how to use 1inch.
Step 1: WalletFirstly, we need an Ethereum or BSC Wallet like MetaMask, Trust Wallet, etc., and buy some ETH, BNB, or MATIC.
Step 2: 1inch AppFirstly, Go to the 1inch website. Click on Launch dApp.
Visit 1inch 1inch App Step 3: Choose the modesSecondly, choose one of the available two modes, i.e., simple or classic.
Choose the modes Step 4: Connect The WalletThirdly, click on the Connect wallet button in the upper right corner. Click on I read and accept. Choose the Network and the wallet (e.g. Metamask) in the popup window. Then, click on the connect button.
Connect The WalletEthereum address will be shown at the top of the page after the wallet has been linked. We can always check our transaction history, copy the address, or disconnect the wallet by clicking on it.
Step 5: Selecting tokenSelect the token we wish to swap from the drop-down menu and enter the amount in the you pay area. Next, select the token we want to get in the you receive area.
Selecting token Step 6: Giving PermissionClick the Give permission to swap button. It grants permission and does not perform the actual exchange.
Giving Permission Step 7: Confirm TransactionClick the swap token button, and then confirm the transaction in the wallet.
Connecting 1inch with BSC wallet Step 8: ConclusionWait for the banner in the upper right corner telling that transaction was successful.
Swap 1inch TokenomicsIntroduction
Supply and Distribution
1inch token distribution 1inch v2 upgradesThe future of 1inch depends on the future of DeFi. The popularity of DEXes is increasing so is the need for aggregators like 1inch. And since 1inch is the most popular DEX aggregator in the market it offers great potential. Furthermore, since we are witnessing the very berth of DeFi, there is a long way ahead, and it’ll be intriguing to observe what the future holds for DEXes and DeFi.
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