1inch has updated its Pathfinder algorithm, significantly improving swap rates.
The new version merges routes to find more efficient paths.

1inch Labs has introduced an upgraded version of the Pathfinder price-routing algorithm, which boosts crypto swap rates by up to 6.5%. The project team shared this information with Incrypted.

According to the release, the new algorithm not only finds more efficient routes but does so much faster. Developers explained that this version of Pathfinder optimizes gas usage by consolidating certain swap steps and maximizing the use of concentrated liquidity.

In addition, the aggregator’s dApp interface has been redesigned to make the swapping process more intuitive. Altogether, these improvements have led to a 6.5% increase in rates, confirmed by a dataset of over 30,000 real-time trades conducted using the new algorithm.

1inch noted that Pathfinder addresses several key challenges in DeFi, including high gas fees that discourage retail users from exploring the space.

“The new Pathfinder allows users and integrators to maximize the value of every trade, offering up to 6.5% better swap rates while further reducing gas costs. This update sets a new standard and pushes the industry toward real adoption, enhancing the experience for everyone,” said project co-founder Sergej Kunz.

The new version of the algorithm enables the following:

• Maximized returns: It delivers better rates by using multiple swap paths, increasing the value of each trade.

• Improved liquidity efficiency: The algorithm splits volumes and merges routes, utilizing pools more effectively and extracting volume from concentrated liquidity for optimal swaps.

• Broader liquidity access: It provides deeper access to a diverse range of liquidity pools and smart volume distribution to get the best rates where it matters most.

• Optimal gas usage: Route consolidation helps spend gas more efficiently on every swap.

How the new algorithm works

As an example, 1inch illustrated a USDC-to-APE token swap. With the old version of the algorithm, the process would have looked like this:

USDC-to-APE swap using the old version of the Pathfinder algorithm.
Source: 1inch Labs.

In this case, as the project team explained, it was not possible to use the same market for both paths, which led to increased gas costs. This issue can be resolved by merging routes — as illustrated in the diagram below:

USDC-to-APE swap using the new version of the Pathfinder algorithm.
Source: 1inch Labs.

By eliminating unnecessary steps, the new algorithm reduces gas consumption and optimizes routes by selecting the most efficient market for the swap.

According to 1inch, more cost-efficient swaps are essential for the broader adoption of crypto assets — and the new version of Pathfinder is designed to make that possible.

The updated algorithm is now available in the 1inch dApp and via the API on the 1inch Developer Portal, offering enhanced routing efficiency, faster transaction speeds, and expanded integration capabilities for developers.

Notably, in May 2025, 1inch’s market share among aggregators surged by 63%, the number of swaps increased by 80%, and the user base grew by 59%, according to data from OurNetwork. On May 21, daily trading volume on the platform reached $4.7 billion — setting a new all-time high.