First there's centralized exchanges, then there are decentralized exchanges. And now something else comes along. 1inch DEX - Exchange Series - 6 of 7
A DeFi Aggregation Platform
Personally I haven't tried 1inch, but everything that I am reading about it looks promising and if you check out their latest video from this tweet it gives a 52 second description that seems to answer many questions right up front.
What looks really appealing in this scenario (all GWEI aside) is the ability to break up an order across multiple DEX and leverage those gains. I'm sure the nuts and bolts of this are in the details especially when you start looking at the multiple scenarios and GAS needed to fuel each.
I saw a demo from another video where the host was saying that his recommendation be that anything below a $500 valued swap would not reap the benefit.
GAS is EVERYTHING, well almost.
With the fees associated during crypto transactions I'm sure the market will respond with new and innovative ways to lower those costs. In the meantime, check out this quick video by DeFi dad that gives some tips on where and how to look for Gas saving techniques.
Now With This In Mind
In this graphic from Dune Analytics you can see the massive growth that 1inch has taken over the last year. The growth is staggering especially from June through current time. This snap shot was taken 3 days ago.
With the users exploding in growth, there's a whole new set of functionality that can come forward as well. People are the key ingredient for any of the protocols and services. If there's nobody on the receiving end, then why do it?
So what I am seeing with 1inch is other really interesting features come forward as well. For example check out this quick run-through by Sergei of 1inch as he talks about how you can create your own liquidity pool.
How does this make you think about your engagement with the different swaps that are out there and what types of interesting protocols you can engage?
My 2 cents
When I come across something that is relatively new such as 1inch (I realize new is a relative term), there is always a healthy bit of skepticism. This is usually followed by a whole suite of questions?
- Does it address a legitimate need?
- Is someone else doing it already?
- How could this serve others?
- How does help me achieve my goals?
The list of questions can go on for sometime if you let it, but these are the buckets that are helpful for me in this situation.
It really appears that 1inch is addressing an issue that I have seen written about and have experienced first hand in that; how do you keep track of all the different prices, protocols, DEX's and achieve the most favorable outcome.
If you're willing to run the API's through the centralized exchanges you can do something similar for sure and I would suspect there is another service out there that could do this. I'll leave that up to the DYOR workforce that is out there in full effect.
1inch has a good reputation to date and when you interact with them on any of their social channels, the folks seem genuine and authentic which is mucho importante in my book. Ultimately this scenario helps me achieve financial freedom and go further faster...
NOTE: Thanks for taking a moment to check out this write-up on 1inch. It looks to be a promising protocol and it is very exciting to see the growth they have achieved in the last year, especially since June.
If you would like to see more of the Exchange Series, you can check them out on Publish0x. Also you can see the latest:
For the rest of the series be sure to check out the BryRi Method Blog on Publish0x.