Known for its decentralized exchange (DEX) aggregation protocol, and liquidity protocol, 1inch has announced that it’s launched the 1inch Network.
According to the announcement, 1inch first developed as a DEX aggregation protocol MVP at the ETHGlobal New York hackathon in May 2019.
The launch of its network signifies its maturation into an ecosystem of decentralized protocols.
The 1inch Network is a collection of DeFi instruments that boasts a variety of protocols, DAOs, and facilitation teams.
Five interoperable components
The 1inch Network consists of five interoperable components.
The first is the established Aggregation Protocol. This facilitates cost-efficient and secure atomic transactions. It does this by utilizing a wide range of protocols and performing argument validation and execution verification.
Anytime users interact with the network in order to find and execute the most efficient transactions across DEXs, they will be leveraging the Aggregation Protocol.
Another familiar component is its Liquidity Protocol. This is an automated market maker that protects users from front-running attacks. It also offers capital efficiency to liquidity providers.
A fresh component is the incorporation of a decentralized autonomous organization (DAO), which governs the 1inch Network. It enables stakers of the 1INCH token to take part in the network’s governance by voting for key protocol parameters.
Another new aspect of the network is 1inch Labs, which are the teams mentioned above that are facilitating the network’s development. The decentralized group of software builders will develop a range of open-source protocols governed by users through the DAO.
Finally, the network will also include the 1inch Foundation, which issues its native tokens. The non-profit organization will develop the network through initiatives that benefit the community. It will do this by incentivizing contributions through grants and also through other capital deployment vehicles.
1INCH token all-time high
This news comes on the heels of major milestones for the platform. After reaching an all-time high close of $5.85 on April 6, the 1inch token struggled the following day.
However, likely due to this announcement, it rebounded on April 8, shooting past the previous high. It closed the day at a new high of $6.22 and has continued moving up today.
Total transaction volumes on 1inch platforms have also now exceeded $30 billion.