1inch Network (1INCH)

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## Basics

* Started on: May 2019
*"1inch is a decentralized exchange aggregator. This means that when you go to swap one token for another on the platform, 1inch looks at a host of DEX’s (decentralized exchanges) and sends your order to the one that provides the best price. Check out Colin Platt’s review on Decrypt."*

 History

* From CoinDesk (11-8-2020):

"*Launched by software engineers from Porsche and NEAR Protocol. The platform was launched at the ETHGlobal hackathon last year as a liquidity aggregator connecting multiple decentralized exchanges (DEXs)."*

## Audits & Exploits

* There is evidence of a 1inch bug bounty program, but no details regarding the potential rewards offered to participating users (22-9-2021).
* Scored 85% on DeFi Safety (22-9-2021):

*"There have been multiple audits performed on the 1inch contracts before and after their various deployments (v1-v3). The full list of audits can be found here."*

With the comment: *"1inch has been updated to an 85%! this is an impressive improvement from our last review on @1inch. Impressive team transparency, documentation, testing and access controls."*

* Previously, 1inch scored a 31% (28-1-2021); *"There have been 8 audits preformed on 1inch exchange. However, there are no published contract addresses, and therefore verification of the validity of any of these audits becomes impossible. This therefore makes the score 0%"* with the comment: *"No smart contract addresses. This means their 8 audits count for nothing.  It is not difficult. Virtually no testing either, but good docs."*

## Governance

* From the token launch announcement (25-12-2020):

"*The community will determine protocol fees and the distribution of rewards. There will be two types of governance: pool governance and factory governance.*

*Pool governance will include the configuration of parameters that are specific to each pool, such as the swap fee, the price impact fee and the decay period.*

*Factory governance is responsible for parameters shared by all pools, such as the default swap fee, the default price impact fee, the default decay period, the referral reward and the governance reward."*

* From Our Network (13-1-2021):

*"In addition to voting on general governance proposals, 1INCH holders can exercise Instant Governance by voting directly and continuously on key protocol parameters. For example, 1INCH holders can vote on the distribution of Spread Surplus (i.e. positive slippage) collected by the 1inch Aggregator and Liquidity Protocol. The voting periods are permanently open, meaning a user can stake their token and vote on a parameter to x value one day, and change their vote to y value if their changes based on new information."*

### Admin Keys

* From DeFi Safety (22-9-2021):

*"1inch admin access control information can easily be found at the bottom of the governance section of their website. The contracts are immutable. No Pause Guardian or similar function was found in the 1inch documentation. However the contracts have pause capability."*

### DAO

* From their blog (13-4-2021):

*"During the first phase, the 1inch Foundation distributes the 1INCH tokens to community members through incentivization activities in accordance with a lockup release schedule. The goal of this phase is to build a core community that will implement DAO-based governance in an efficient way.*

*At this stage, instant governance is available, which is a feature that enables 1INCH token stakers to conveniently participate in, benefit from, and vote for various protocol settings, avoiding lengthy voting periods.*

*At the second phase, scheduled to start in early 2022, the 1inch Foundation will introduce a full-fledged DAO functionality, providing 1INCH stakers with access to extended governance mechanisms in a bid to completely decentralize the 1inch network that will eventually be owned by the community.*

*“We are deliberately waiting for about a year before introducing the second phase of DAO governance,” says Sergej Kunz, 1inch Network co-founder. “If we had done it earlier, the DAO would be controlled by a narrow group of individuals. But our aim is true decentralization and we want governance to be totally inclusive.”"*

## Token

### Launch

* From The Defiant (24-8-2020):

"*1inch is facing backlash from the community regarding its 1INCH token distribution.*

*Liquidity providers to 1inch’s new automated market maker DEX Mooniswap will earn one-year locked tokens for adding liquidity to any of these pairs before the token launch. The token’s launch date hasn’t been set yet."*

* The token got its first airdrop and launch on Christmas (25-12-2020).

### Token allocation

* From their blog (21-8-2020):

"*A max vesting time of 1INCH distribution is four years. Over the course of this time, the distribution mechanism will be the following:*

1. *30% for security of the network and maintenance of its functionality with 4 year vesting;*
2. *22.5% for the 1inch core team and future employees with 4 year vesting;*
3. *21% for ecosystem growth (yield farming, community building, research, etc.) with 4 year vesting;*
4. *19.5% to investors and shareholders with 2,5 year vesting;*
5. *5% to advisors with 4 year vesting;*
6. *2% to early Mooniswap liquidity providers with 1 year vesting."*

* From The Defiant (24-8-2020):

*"Detailed in the announcement post, 1INCH will distribute 2% of tokens to early Mooniswap liquidity providers and 21% to ecosystem growth. This is just 0.5% more than the core team (22.5%) and 3% more than investors (19.5%)."*

### Utility

* From their blog (21-8-2020):

*"The 1INCH token is a utility token that serves several network needs:*

1. *to ensure a permissionless fashion of interaction with the protocols;*
2. *to secure funds for further ecosystem development;*
3. *to incentivize participation in potential governance of specific network functionalities;*
4. *to stake for the network security."*

* From The Defiant (24-8-2020):

"*Touting itself as “the system (which) will mark the most efficient and benevolent structure to ever hit the market”  the 1inch team is scrambling to emphasize 1INCH is much more than just a worthless governance token, hence the conservative distribution. Still, they haven’t clarified exactly what the token’s utility will be other than saying “it is gonna be huge.”"*

* From the token launch announcement (25-12-2020):

"*The key feature of the 1inch Liquidity Protocol version 2 is the price impact fee. This is a fee that grows with price slippage to ensure that liquidity providers and 1INCH token stakers earn significantly more on volatility.*

*Users who stake their 1INCH tokens, as well as liquidity providers in the 1inch Liquidity Protocol can vote directly on major protocol parameters: the price impact fee, the swap fee, the governance reward, the referral reward, and the decay period."*

### Stablecoin

#### one1Inch

* From EthHub (6-7-2021):

*"The ICHI Community has launched one1INCH, a stablecoin for the 1inch community. one1INCH will provide a stablecoin for the community that can be used to create USD exposure during 1inch operations, help diversify the 1INCH at 1inch Foundation treasury that is the part of 1inch Network DAO, more easily pay operating costs, provide liquidity, and earn rewards."*

## Tech

* Whitepaper can be found [insert here].
* Code can be viewed [insert here].

### Implementations

* Built on: Ethereum, BSC and Polygon (13-5-2021).

### How it works

* From Formal Verification (11-8-2020):

*"1inch is similar to the 0x API in its overall aim of bridging multiple DEX venues but uses a combination of centralised off-chain order book swaps and on-chain swaps that is facilitated by OneSplit."*

### Upgrades

* From The Defiant (6-11-2020):

"*1inch has introduced its v2, which contains a new discovery and routing algorithm to execute swaps faster and at better rates. The team also improved the user interface design."*

* From EthHub (23-3-2021):

*"1inch v3 Introduced. V3 includes a bunch of improvements such as lower transaction fees, more liquidity and other features."*

### Scaling

* Is 'in the process of completing' integrating with ZkSync (30-10-2020).

### Interoperability

* 1inch, is a node on Gravity and will use Gravity to integrate with non-ETH ecosystems (14-8-2020).

### Other Details

* The aggregator uses GasToken to potentially lower transaction fees for users when network congestion is high.

## Compliance

* 1inch blocks out US trades in preparation for separate American platform (30-9-2021).

## Their Other Projects

* After two years the project made the move of calling itself a Network instead of only a DEX (9-4-2021). It comprises of multiple parts.

### 1inch Aggregation Protocol

* From their twitter (9-4-2021):

*"The protocol facilitates cost-efficient and secure atomic transactions by utilizing a wide range of protocols and performing argument validation and execution verification."*

### 1inch DAO

* From their twitter (9-4-2021):

*"1inch DAO is a decentralized autonomous organization that enables $1INCH stakers to vote for key protocol parameters and take part in the network's governance."*

### 1inch Foundation

* From their twitter (9-4-2021):

*"The 1inch Foundation is a non-profit organization that issued the $1INCH token and is dedicated to fostering the 1inch Network and initiatives that benefit the network's community."*

### 1inch Labs

* From their twitter (9-4-2021):

*"A key contributor to the 1inch Network and a decentralized group of software builders that develop a range of open-source protocols governed by users through the 1inch DAO."*

### 1inch Liquidity Protocol

* Fka Mooniswap.

* 1inch launched its own automated market maker (AMM) called Mooniswap (11-8-2020).

* From Crypto Briefing (11-9-2020):

*"1inch.exchange, is integrating with Tron's JustSwap. The new partnership will also see 1inch.exchange’s Mooniswap merge with Tron's blockchain."*

* From Our Network (13-1-2021):

*"It is unique in its design through its addition of a decay period and price impact fee. These features aim to increase profits for liquidity providers (LPs) and lower profits for arbitrageurs while maintaining the ease of use traders expect from an AMM."*

## Usage

* From Formal Verification (5-6-2020):

"*Activity on DEX aggregator 1inch continues to grow in recent weeks facilitating $207 million in trading volume in the last 3 months."*

* From Formal Verification (19-6-2020):

"*Over 50% of total distribution to 1inch for the 15th and 16th June stemmed from Curve. Additionally, nearly 60% of the total trade volume were USDC and USDT on both days."*

* From Paradigm (19-1-2021): "*1inch hits $10B total volume."*

### Projects that use or built on it

* From Crypto Briefing (11-9-2020):

*"1inch.exchange, is integrating with Tron's JustSwap. The new partnership will also see 1inch.exchange’s Mooniswap merge with Tron's blockchain."*

* Gravity is integrating with 1inch (8-2020).

## Competition

* Other aggregators, such as 0x API, DEX.AG, Totle, and Paraswap.

## Team, Funding, Partners

### Team

* Anton Bukov; co-founder of 1inch and an engineer for NEAR.
* Sergej Kunz; founder
* Nikita Ovchinnik; CBDO

### Funding

* From CoinDesk (11-8-2020):

"*1inch has raised $2.8 million in a funding round  led by Binance Labs. Investors in its funding round, announced Tuesday, also included Galaxy Digital, Greenfield One, Libertus Capital, Dragonfly Capital, FTX, IOSG, LAUNCHub Ventures and Divergence Ventures. Loi Luu, founder of Kyber Network, and Illia Polosukhin, co-founder of NEAR Protocol, also participated."*

* From Decrypt (2-12-2020):

"*1inch has secured a $12 million funding round. The funding round was led by Pantera Capital."*

* 1Inch Network raised $175 million in a Series B financing round (1-12-2021):

*"The raise also saw the participation of about 50 other investors, including Jane Street, VanEck, Fenbushi Capital, Alameda Research, Celsius, Nexo, Tribe Capital, and Gemini Frontier Fund, among others."*

### Partners

* Part of (17-4-2020) the Ren Alliance.
* Is mentioned as a partner on Ontology's website (2-11-2020).
* From Paradigm (14-9-2021):

*"1inch partners with BitPay: Thanks to the partnership, BitPay users will get access to the 1inch dApp’s DEX aggregation functionality for the best deals across multiple liquidity sources."*

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