The initial protocol of the 1inch Network is a DEX aggregator that searches swaps across multiple liquidity sources, offering users better rates than any individual exchange. It runs on Ethereum but has already been deployed to Binance Smart Chain and Polygon.
More momentum for Optimism
The DeFi protocol has been the latest in a growing list of platforms such as Uniswap and Synthetix that are using optimistic rollups to scale operations. Sergej Kunz, the co-founder of 1inch Network, stated:
“Optimistic Ethereum is a highly promising L2 solution focused on scalability, and the 1inch launch on Optimistic will facilitate a dramatic increase in transaction speed,”
The rollout will be phased with initial throughput on OΞ limited to 0.6 transactions per second. As the infrastructure is optimized, transactions will become faster, the blog post added.
1inch users can already start migrating assets to OΞ, an Optimism Gateway which is compatible with a range of the popular wallets, such as MetaMask, it reported. Deposits from the Ethereum network to the Optimistic mainnet will be instant, but withdrawals back to Ethereum will take 7 days until a fast withdrawal service is launched.
OΞ uses optimistic rollups which rely on publishing the data to the blockchain, assuming it is correct, and allowing a ‘challenge period.’ During this time, users can submit “fraud proofs” to signal that the data is incorrect, triggering a dispute that should result in a correction of that data.
The announcement also stated that Optimism, which soft-launched to mainnet in January, has plans for further improvements, such as extra scaling, smart wallets enabling paying for gas in any token, and decentralization of transaction sequencing.
1INCH token price update
The native token for the DeFi protocol has made 2.2% on the day to reach $3.13 at the time of press according to CoinGecko. 1INCH is up almost 12% since the same time last week and an impressive 40% over the past fortnight.
Like most of its DeFi brethren, however, it has fallen heavily from its all-time high of $7.84 in early May. In terms of total value locked, the DEX has a little under $16 million according to DappRadar, making it a minnow when compared to the likes of Uniswap.