Next, we will talk about 1Inch Exchange. We have already talked about this decentralized exchange here on more occasions, but some web users ask us for a complete tutorial, and here we leave it.
Introduction to 1INCH Exchange:
1inch exchange is one of the best DEX aggregators on the market. The platform also has liquidity pools and allows users to farm its native token, 1INCH.
After the launch of the 1INCH token, the 1inch AMM exchange, Mooniswap, has been deprecated and renamed 1inch Liquidity Protocol.
With their exchange and liquidity pools, 1inch works more like Uniswap and SushiSwap. But the platform can offer better rates as it draws liquidity from several other decentralized exchanges.
This review and tutorial will show you how to use the 1inch exchange and add liquidity to 1inch liquidity pools. Also, I will give you information about 1inch exchange fees, 1inch tokens,s, and 1inch limit order.
What is 1inch exchange?
1inch exchange is a DEX (decentralized exchange) aggregator. Split orders between multiple decentralized exchanges to achieve the best possible rates.
Currently, 1inch supports more than 20 liquidity protocols. Some of the major ones are Uniswap, Balancer, SushiSwap, Curve, and Kyber.
You can connect your web3 wallet to 1inch. Trade and exchange ERC-20 tokens at the best prices on the market.
The 1inch exchange also allows users to create limit orders for free and earn interest by lending cryptocurrencies and providing liquidity to liquidity pools. (The latter is not available in 1inch v2.)
With the launch of the 1inch token and the addition of liquidity pools to the platform, you can now add liquidity to the 1inch liquidity pools and stake LP tokens to earn the 1INCH token.
1inch change fees
As a DEX aggregator, 1inch itself does not charge any fees for exchanging tokens. The fee to be paid for the exchanges depends rather on the decentralized exchanges from which the liquidity is obtained.
For example, Uniswap charges a flat fee of 0.30% for orders and Balancer has variable fees depending on the group.
For the fees of other decentralized exchanges, you can check this list of decentralized exchanges.
1inch Network’s native token, 1INCH, functions as a governance token, and the platform now relies heavily on its DAO for fees and rewards.
You can check the exchange fee for the liquidity protocol, the governance reward, and other parameters and participate in the governance in the “DAO” tab of the platform.
If you stake your 1inch tokens or provide liquidity to the protocol, you can have a say in the main parameters of the protocol.
You may be wondering how 1inch trade makes money if it doesn’t charge any fees for trades themselves.
1inch receives a portion of the fees that go to the liquidity sources it has partnered with. Also, I was making money on positive slippage.
A portion of these profits from positive slippage trades will be paid to referrers, and the rest will be included in the governance reward.
What is most important today for decentralized exchange users is gas fees. Due to congestion on the Ethereum network, you may sometimes have to pay high transaction fees.
To minimize this burden, you can activate Chi Gastoken on the platform to lower your transaction costs or trade when the price of Ethereum gas is low.
1inch token explained
1inch is an ERC-20 token used to govern the 1inch DEX aggregator and liquidity protocol.
1INCH token holders can decide on various parameters related to the protocol, such as the price impact fee, the exchange fee (for the liquidity protocol), and the governance reward.
You can find the current parameters and participate in the governance in the DAO tab of the platform.
The total token supply of 1inch is 1.5 billion. 30% of the total 1inch token supply has been allocated to the community and will be used over a period of 4 years.
The rest of the 1inch token supply will be gradually distributed to the team, investors, etc. and 14.5% of the supply will be used for development.
How to buy a 1inch token?
The 1inch token is currently traded on various centralized and decentralized exchanges such as Binance, Uniswap, and 1inch.
In terms of liquidity and ease of use, the best exchange to buy and trade 1inch is Binance.
If you don’t have a Binance account yet, click this link or visit our guide to open your Binance account with 20% off the fee.
How to bet 1inch token?
You can stake your 1inch tokens in the “governance” section under the “DAO” tab on the platform.
1inch token stakes earn government rewards consisting of the exchange fee and the price shock fee.
As a 1inch token gambler, you can vote on these parameters and earn government rewards in 1inch tokens.
To stake your 1inch tokens, first, go to the 1inch exchange and connect your wallet to the platform by clicking the “connect wallet” button.
After connecting your wallet to the exchange, click on the “DAO” tab and then click on “governance”.
Enter the amount of 1inch you want to stake and unlock the token using the “unlock” or “infinite unlock” option. If you don’t want to pay for gas again for this transaction, use the infinite unlock option.
You can change the gas from fast to standard or to a custom value by clicking the settings icon. After unlocking the token, you can simply stake your 1inch tokens by doing one last transaction.
1inch exchange compatible wallets
1inch is an Ethereum -based, decentralized DEX aggregator and liquidity protocol. Users access the services provided by the 1inch exchange without the involvement of 1inch or any third party.
You can connect your Ethereum wallet to a 1inch exchange and start trading tokens on your own. 1inch supports various cryptocurrency wallets.
1inch exchange compatible wallets: MetaMask, Trust Wallet, Torus, FortMatic, WalletLink, Portis, Ethereum, UniLogin, WalletConnect, Bitski, MEW, and Ledger.
You can use 1inch exchange with MetaMask, mobile wallets, or Ledger. Next, I’ll show you how to use the 1inch swap with MetaMask.
How to use 1inch exchange
Step 1 – Open your wallet and connect it to a 1inch exchange
First, log in to your MetaMask wallet in your browser or open another 1inch compatible wallet that you want to connect to 1inch.
Go to 1inch.exchange and click on the “connect wallet” button located at the top right corner of the page. Accept the terms and click MetaMask.
It could also look like a Web3 wallet if 1inch hasn’t detected MetaMask yet. In that case, you can refresh the page.
Step 2: Confirm the connection in MetaMask
When you click on “MetaMask” on the 1inch exchange, a notification will appear in your MetaMask wallet for confirmation.
You can simply choose the address you want to use and connect your wallet to 1inch. Exchange via the MetaMask notification.
Step 3 – Trade tokens on a 1inch exchange
First, choose the currency you want to exchange and enter the amount of currency. Then choose the currency you want to exchange for. In the example below, I am trading Ethereum to AAVE.
You must first unlock the token you want to trade in order to make a trade if you haven’t done so before. Since I have unlocked Ethereum before, there is no lock sign before ETH in the example below.
Only Balancer is used for this order, which offers the best rate at the moment. Sometimes the order can be split between a few decentralized exchanges to achieve the best rate.
You can set a custom GAS rate by clicking the settings icon and also using Chi Gastoken to pay lower gas rates. To learn how to use Chi Gastoken, you can refer to this article.
You can increase the slippage rate if you don’t want your trade to fail due to price movements. To execute the exchange, click on the “exchange token” button and confirm the transaction in MetaMask.
1inch exchange infinite unlock
You need to give the platform the permission to spend the token you want to exchange by clicking “unlock” or “infinite unlock.”
“Infinite Unlock” will save you gas costs as you won’t need to unlock it again for future transactions.
On the other hand, allowing the platform to spend only a certain amount with the “unlock” option is safer but more expensive in the long run if you make more trades.
Primarily you should unlock only for certain amounts on new/unreliable dapps.
1inch liquidity pools
1inch’s liquidity protocol Mooniswap, which introduced virtual balances to bring more profit to liquidity providers, has been deprecated and renamed 1inch Liquidity Protocol.
1inch liquidity pools can be found in the “pools” section under the DAO tab on the 1inch exchange.
If you have liquidity on Mooniswap, you can either migrate to the 1inch liquidity protocol at 1inch or simply remove your liquidity from Mooniswap.
1inch’s liquidity protocol currently has several pools that you can add liquidity and earn fees. Not all pools are included in the 1inch token farm.
So, if you want to earn a 1INCH token by staking your LP tokens, add liquidity to 1INCH farming pools like 1INCH-ETH, 1INCH-USDC, and 1INCH-DAI.
How to add liquidity to 1inch liquidity pools?
To add liquidity to 1inch liquidity pools, first, connect your wallet to the platform and click on “pools” in the DAO tab.
You can view various liquidity pools with APY rates and other information in the “pools” section. Click on the pool you want to add liquidity to and click the “provide liquidity” button.
You must deposit an equal value of each token in 1inch liquidity pools. Just enter an amount to make the LP token flawless and adjust it according to the amount you want to add to the pool.
Use the “unlock” or “infinite unlock” button to allow the smart contract to spend your tokens.
After unlocking the pair tokens, you can simply add liquidity to the pool by making a final transaction.
How to stake 1inch LP tokens to win 1inch?
After providing liquidity to a pair that is included in the liquidity farming program, you can stake your LP tokens to earn 1inch token.
Click on « farming » in the DAO tab on the platform. You can view the 1inch farm pools and use the “deposit” buttons to stake your LP tokens.
After clicking the “deposit” button in your pool, enter the amount you wish to wager and make the transaction. You can see your estimated daily, monthly, and yearly 1inch earnings.
1inch limit order
If you don’t want to run a token swap at market rates, you can place a limit order using the 1inch limit order feature. (Limit order is not available as of now, but will be available in 1inch v2 soon.)
Update: You can now place limited orders on 1inch v2.
To place a limit order, choose the pair and enter the number of coins. You must also enter the duration of your order within which it will be active and can be executed by receivers.