Everything you need to know about 1Inch exchange and its native token
1inch Network is a decentralized exchange and moreover an aggregator for various protocols on multiple blockchains. This means that 1inch Network provides you with the best prices and lowest slippage across as many decentralized exchanges as possible.
What can you do with 1inch
You can get started using 1inch Network simply by connecting your cryptocurrency wallet, using software like WalletConnect or MetaMask. The platform allows users to swap the crypto in their current wallet for any other supported cryptocurrency. In addition, 1inch allows users to bridge their cryptocurrency from one blockchain to another.
At the time of writing, 1inch Network supports more than 12 different networks. This includes Ethereum, BNB Chain and Polygon. But also upcoming Layer-2 ecosystems such as Arbitrum, Optimism, zkSync Era and Base. You can discover dapps on each of these blockchains through DappRadar.
What is a crypto aggregator?
A decentralized exchange uses liquidity pools to provide users with the opportunity to swap tokens. Trading fees generated from these swaps, then go to those who provide liquidity. However, this means that all the trading happens in the same pool, for example ETH-USDC, organized by one platform. However, an aggregator looks at all ETH-USDC pools it can find, and then offers users the best and more affordable trades.
What is the 1INCH token?
While the 1INCH token reduces fees on the 1inch platform, its real power lays in governance. Holding 1inch gives users a vote in the decision making of the 1INCH DAO. This decentralized organization makes decisions about the direction the platform needs to go.
You can join the 1INCH DAO by following these steps:
- Get yourself some 1INCH tokens
- Then make sure you’re on the Ethereum network, and connect your wallet to the 1inch dapp
- Go to DAO > Staking
- Now stake your 1INCH tokens, and you will receive Unicorn Power.
- Delegate your Unicorn Power to start earning rewards
Learn more about DeFi
1inch Network is one very interesting part of the wider DeFi ecosystem. Blockchain technology has enabled people to store their value and utilize it, creating a world of opportunity. The DeFi ecosystem evolves fast, and more innovation is expected every month. Read our guide to get up to speed, and learn all there’s to know about decentralized finance.