[ad_1]
The upgrade aims to make 1-inch exchanges even more profitable and secure, setting new standards for economy, security and user experience in the DeFi space.
Fusion 1 inch upgrade
The 1 inch mesh is excited to announce the release of Fusion, a major upgrade centered around the 1inch Swap Engine – a unique combination of existing and new technology that aims to improve the profitability and security of 1inch swapping.
The 1-inch Swap Engine facilitates Fusion mode, which allows DeFi users to place orders with a specific price and time range, without paying network fees. Meanwhile, the upgrade also features major security improvements, as well as updated investment contracts and tokenomies.
“This is a huge step forward for the entire DeFi space,” he says Sergey Kunz, 1inch Network co-founder. “Fusion makes 1-inch replacements dramatically more cost-effective because users won’t have to pay network fees, plus it adds an extra layer of security, protecting users from sandwich attacks.” Our goal is to make the DeFi experience for users as smooth as ever. Thanks to the 1-inch Swap Engine and Fusion Mode, everyone now gets an amazing UKS with a high degree of security.”
“For years, people trusted their cryptocurrencies to centralized actors, some of which turned out to be greedy and malicious, leading to massive losses of user funds,” he adds. “In contrast, 1inch now enables everyone to have the highest level of security for non-custodial exchanges, which are executed in a completely permissionless and trustless manner, and users remain in full control of their assets.”
1-inch replaceable motor
From the very beginning, 1inch’s goal has been to make DeFi a safe, useful and profitable environment for everyone. Another achievement in this direction is the introduction of the 1-inch Swap motor.
Based in part on existing technology, including the 1inch Limit Order Protocol and the 1inch Aggregation Protocol, the 1inch Swap Engine is a decentralized trading and matching system that connects DeFi users with virtually unlimited liquidity – both centralized and decentralized – through professional market makers. Basically, the 1-inch Swap Engine offers users access to almost all available liquidity in the crypto market.
The 1-inch Swap Engine revolutionizes the execution of swaps on decentralized exchanges, offering a completely new type of decentralized order matching approach that uses the Dutch auction model, while being based on market rates and taking into account price impact.
Orders are filled by resolvers – professional market makers who pay applicable gas fees while profiting from arbitrage trading. To become a resolver, they will need to stake 1INCH tokens and deposit a sufficient amount of 1INCH into a “commission” contract. In the initial stages, resolvers will not pay any fees, but later, the 1-inch DAO may introduce a fee for resolvers. The top five solvers – based on the volume and period of 1INCH stakes – will be prioritized for order fulfillment.
Fusion fashion
The 1-inch Swap Engine powers Fusion Mode, which allows users to exchange tokens on different DEXs without paying any network fees, at the best prices.
In Fusion mode, the user can choose between three options:
- Fast – With this option, the user is willing to accept a slightly less desirable rate in order to get their exchange done in the first few blocks.
- Trade fair – With the Fair option, the user agrees to a slightly longer order execution time in exchange for a more favorable exchange rate. The initial rate is slightly higher than the market rate, and there is a chance that the exchange rate may change during the execution of the transaction to make it more favorable for the user.
- Auction – With the Auction option, the user agrees to wait for the maximum expiration time (10 min) in order to get the most favorable rate for his trade. The initial rate is 1% better than the market rate, and this option is particularly suitable for exchanging large amounts of assets, taking advantage of arbitrage.
And since the Swap Engine powering Fusion Mode is built on top of 1inch’s Aggregation Protocol and Limit Order Protocol, sufficient liquidity for swapping is always guaranteed.
Initially, Fusion mode will be active on Ethereum, Polygon and BNB chain. It will gradually be activated on all networks where 1 inch is available.
Protection from MEV
When exchanging on decentralized exchanges, users can potentially fall victim to Maximum Extractable Value (MEV) strategies. This could lead to significant losses of user funds. In 2022 alone, DEX users lost the equivalent of over $800 million to sandwich attacks, the most common form of MEV.
In Fusion mode, professional traders who fill user orders use the most sophisticated and effective means of protecting users’ trades from MEV. So users simply don’t have to worry about MEV.
With the Fusion release, exchanging tokens directly on DEXs or on aggregators that do not offer MEV protection will no longer be a viable option.
Network management and tokenomics
The governance and tokenomy of the 1 inch grid has also been significantly altered. Under the new management system, users can invest their 1INCH tokens for a period of one month to two years.
Users who stake 1INCH tokens receive Unicorn Power, which can be used for several purposes.
Unicorn Power could be used by 1INCH stakers to participate in the management of the network, they could delegate it to other users and solvers – in exchange for rewards from the solving incentive program. As resolvers compete to fill the most lucrative orders, priority will be based on the resolver’s delegated Unicorn power.
In addition, by staking their tokens, users contribute to the overall stability of the network, since malicious actors will not be able to attack the 1-inch DAO. The new system will not allow staking tokens for periods shorter than one month, and the Unicorn Power obtained for short-term investment will not be enough to influence the decisions of the DAO.
Meanwhile, 1inch DAO could also create incentives for 1INCH stackers. With the DAO’s decision, the fees collected from resolvers could be distributed among 1INCH stackers, based on their commitment to the network and Unicorn Power.
1-inch Resolver incentive program
Starting December 24, the 1-inch Resolver Incentive Program will be launched, within which resolvers will be reimbursed for the gas spent on filling user orders in Fusion mode. Under this program, the 1inch Foundation will distribute 10 million 1INCH tokens as gas refunds. Resolvers fulfilling Fusion orders, as well as those using the 1-inch aggregation protocol, will be eligible for a refund. The maximum monthly refund size is 1 million 1INCH tokens per resolver.
As resolvers will fill orders without trying to minimize their gas costs, they will offer customers better exchange rates. As a result, regular users will be the main users of the program. Solvers will collect gas refunds for the last week of December 2022 and for January 2023 in early February 2023. The program will run until the entire 10 million 1INCH fund is used up.
The existing gas refund program will last until December 31, 2022.
*
The Fusion upgrade takes the DeFi user experience to a whole new level, but the journey is far from over. The 1 inch network will not stop until trading on DEXs becomes as simple and smooth as on centralized platforms, but much safer, more profitable and more efficient!
Stay tuned for more news and updates from the 1inch network!
**This article is a press release.**
What is 1 inch:
1inch is a Decentralized Exchange (DEX) aggregator that provides the best rates by discovering the most efficient exchange routes on all leading DEXs. 1inch works on multiple networks, including Ethereum, BNB Chain, Poligon and Optimistic Ethereum.
Where to find 1 inch:
Website | Twitter | Medium | Discord | Telegram |
[ad_2]
Source link
