What Is 1inch (1INCH) and How Does It Work?
1inch is a decentralized exchange (
DEX) aggregator that helps users find the best token swap rates across multiple DEXs. It splits trades across platforms to reduce slippage, fees, and price impact. The native 1INCH token powers governance, staking, and utility within the ecosystem.
How Does 1inch Work?
1. Pathfinder Routing: 1inch’s Pathfinder algorithm scans hundreds of
liquidity pools and DEXs to route trades efficiently.
2. Swap Modes
• Classic: User pays
gas; simple and advanced options for swaps.
• Fusion: Gas-free trades where resolvers compete to execute orders via Dutch auctions, offering MEV protection.
• Fusion+: Enables cross-chain, gasless swaps using secure escrow mechanisms.
3. Other Features
• Limit Orders: Set target prices for automated execution.
• Liquidity & Staking: Provide liquidity or stake 1INCH to earn fees and participate in governance.
Who Created 1inch and When Did It Launch?
Sergej Kunz and Anton Bukov, two seasoned smart‑contract developers, met through Kunz’s live crypto-audit streams in 2018–19 and collaborated on hackathons globally. They co-created the first 1inch DEX aggregator during a 56‑hour coding sprint at the ETHGlobal Hackathon in New York on May 19, 2019.
1Inch's Launch & Evolution
• The 1inch dApp launched in mid‑2019, quickly integrating multiple DEXs, visual slippage tools, and a cool unicorn mascot.
• Mooniswap (now liquidity protocol) debuted August 2020 to prevent front-running.
• 1inch v2 and Pathfinder arrived November 2020, enhancing multi-path routing and gas efficiency.
• The 1INCH token and DAO launched December 2020, enabling governance and staking.
• Limit Order Protocol went live June 10, 2021.
• Fusion (gasless & MEV‑resistant swaps) launched December 2022.
• In April 2025, Fusion+ expanded support to Solana, enabling cross‑chain swaps.
1inch Roadmap Highlights
1. Cross‑Chain Expansion: Launched Fusion+ on Solana in April 2025, with ongoing wallet integrations (e.g. Phantom, Trust Wallet).
2. 1inch Wallet Plans: 2024 saw the rollout of the 1inch Card and mobile app. A standalone 1inch Wallet is slated later in 2025.
3. DeFi Ecosystem Growth: Continual development of Aggregation Protocol (v6 by 2024), Limit Order enhancements, and new liquidity offerings.
4. RWA & Institutional Integration: Mid-2025 focus on
tokenized real‑world assets and partnerships with institutions such as Mastercard and fintech Baanx.
5. DAO & Governance Evolution: Deepening DAO roles, expansion of “Unicorn Power” staking, and increased community governance via proposals and voting on protocol changes.
What Is the 1INCH Token Used for?
The 1INCH token serves several key purposes:
1. Governance: It acts as the voting token for the 1inch DAO, enabling holders to influence protocol changes, parameter updates, and feature proposals.
2. Utility & Staking: Users can stake 1INCH to become resolvers in Fusion auctions, earning rewards by paying gas on behalf of traders. Token holders can also delegate to resolvers and earn yield. It's also used in liquidity protocols and limit order functionality within the ecosystem.
You can trade 1INCH on
BingX's spot market by navigating to the
1INCH/USDT trading pair. Simply place a market order for instant execution at the best available price, or use a limit order to set your own target price and have the order executed when that level is reached.
What Is 1inch Tokenomics?
1inch Protocol has a fixed
total supply of 1.5 billion 1INCH tokens, with 6% unlocked at launch; the remainder vested over four years through end of 2024.
1INCH Token Allocation Breakdown
• 30% – Community incentives & development
• 14.5% – Core contributors
• 14.5% – Network growth fund (developer grants, ecosystem expansion)
• Investors & Advisors – ~30%
• Foundation Reserve – ~11%
How to Earn on 1inch Protocol
Here are the various ways to earn on 1inch Protocol:
1. Stake 1INCH Tokens: Stake your 1INCH to gain Unicorn Power (UP), which is used to vote in the 1inch DAO and delegate to resolvers. Stakers earn a share of protocol fees collected through Fusion auctions.
2. Become a Resolver: Stake 1INCH directly as a resolver. You pay gas for Fusion swaps and earn rewards from swap execution and DAO incentives.
3. Provide Liquidity: Deposit assets into supported pools (e.g., ETH/1INCH) on 1inch’s liquidity protocol or other DEXs integrated with 1inch. Earn trading fees proportional to your share.
4. Participate in Farming (if available): Occasionally, 1inch offers
yield farming incentives for LP tokens in partner protocols.
5. Fusion Auctions: Resolvers can compete in Fusion auctions to execute user swaps and collect rewards while helping users avoid gas fees.
What Blockchain Network(s) Does 1inch Operate on?
1inch operates across a diverse and rapidly evolving spectrum of blockchain networks. Initially launched on Ethereum, it has expanded support to include BNB Chain, Polygon,
Arbitrum,
Optimism, Gnosis Chain, and
Avalanche, enabling gas-efficient and optimized multi-chain swaps. With the rollout of Fusion, users also benefit from advanced MEV-protected swaps on these
Layer‑2 chains. In April 2025, 1inch eliminated support for low-activity chains like
Fantom,
Klaytn, and Aurora, but added major new networks: Solana (for Fusion and wallet use), Unichain, and Sonic thanks to strategic updates in June and July. Through its Fusion+ model, 1inch now facilitates seamless, gasless, intent-based cross-chain swaps between these supported ecosystems.
How to Store 1INCH Tokens Securely
You can conveniently hold your 1INCH tokens directly on the BingX spot wallet, which is fully custodial. This means BingX safeguards your assets through enterprise-grade infrastructure, layered security measures, and 24/7 monitoring. It’s ideal for users who want quick access to trading or don’t want to manage private keys, just ensure you enable
two-factor authentication (2FA) and use a strong password to enhance account protection.
For full control, transfer 1INCH to a non-custodial wallet. Trusted options include the 1inch Wallet (supports secure backups, transaction decoding, and Ledger integration),
MetaMask,
Trust Wallet, or
hardware wallets like
Ledger or Trezor. Hardware wallets store
private keys offline on secure chips, shielding funds from online threats. And always back up your keys or
seed phrase in a secure offline location, never share them, and consider using
multisig or enabling biometric/2FA protections.
How Secure Is 1inch Protocol?
1inch Protocol is highly secure, with all its smart contracts audited by leading firms like OpenZeppelin and CertiK, ensuring robust protection against vulnerabilities. Its Fusion architecture provides built-in MEV and front-running resistance through Dutch auctions and trade bundling, while on-chain and off-chain safeguards like AML screening, scam token filters, and blocklists further enhance user safety. After a minor resolver exploit in March 2025, which did not impact user funds, 1inch swiftly patched the issue and expanded its bug bounty program to $500,000 to encourage ethical hacking. Combined with active threat monitoring and emergency pause functions, 1inch delivers a comprehensive security framework for
DeFi users.
Is 1inch (1INCH) a Good Investment?
The 1INCH token offers strong utility within the 1inch ecosystem, making it appealing to long-term investors and DeFi users. As the governance token for the 1inch DAO, it gives holders voting rights over protocol upgrades and fee structures. Staking 1INCH unlocks “Unicorn Power,” enabling participation in governance and Fusion auctions, where resolvers earn fees by facilitating gasless, MEV-resistant swaps. With multi-chain support across Ethereum, BNB Chain, Polygon, Arbitrum, Optimism, and Solana (via Fusion+), 1inch has become one of the most widely used DEX aggregators in DeFi, processing billions in volume monthly.
Moreover, 1inch continues to innovate with features like cross-chain swaps, gas-efficient routing, and partnerships for
real-world asset (RWA) integration. These developments position the protocol as a key player in the evolving DeFi landscape. However, potential investors should consider risks like market volatility, competition from other aggregators, and evolving regulatory frameworks impacting DeFi platforms. As with any crypto asset, it’s crucial to balance its growth potential against these inherent risks.