Welcome to this week’s coin review. Having not seen Bitcoin prices this low since last week. Nano, Maker, and Avalanche received a ton of love in the process of a much-needed Bitcoin correction this week. While the majority of this liquidity is still conducted on centralized exchanges, more of it is moving into the decentralized exchange economy by the day. While I’m certain you’ve already heard of, or used 1Inch Exchange. The recent shift from being a simple aggregator, to having an instant governance model overnight. Makes it time to take a closer look into what this means for the future of the exchange, and participants in its governance.
Introduction
1inch Exchange is a DEX (Decentralized Exchange) aggregator that sources liquidity from various exchanges in one place. Current smart contract technology empowers 1Inch Exchange’s aggregator and enables users to optimize and customize their trades. For those not familiar with DEX aggregation. Instead of manually searching across multiple DEXs like Bancor, Curve, SushiSwap, and Uniswap individually. The 1Inch Exchange allows a user to search across all available DEXs at once in order to find the highest liquidity, lowest slippage, and best available price for their trade. Providing a valuable non-custodial tool for all users at every level of their trading experience. The benefits of using a DEX are both significant and limited in comparison to a CEX (Centralized Exchange). While DEXs have been unable to provide the large amount of liquidity and user base of a CEX, they benefit from being unhackable and offering limitless trading pairs against the DEXs native asset. Another unique property of this aggregation compared to a single decentralized exchange is that it’s capable of splitting a single trade across multiple DEXs. Allowing you to utilize many Decentralized Exchanges simultaneously, in a single transaction. The name of the project, 1inch, was inspired by Bruce Lee’s legendary “1inch punch”. An epitome of efficiency in Martial Arts, aiming to symbolize the project’s efficiency in the crypto industry. The 1inch aggregator API was successfully built within two days, at the ETH New York 2019 Hackathon Event. The team at 1Inch understands that in order for DEXs to become more used than CEXs, certain conditions have to be met in the future. DEXs and blockchain protocols have to perform one hundred times faster than they do now.
To execute a 1inch punch you need power, in Eastern cultures, this is knowingly referred to as Chi. In order to set themselves apart from other aggregators, the team at 1Inch decided to create a burn token called CHI. Burn tokens operate differently on the Ethereum network with the ability to use a Storage Refund mechanism built into the network. The idea for the CHI token is based on the original Gastoken GST2 implementation. As a smart contract erases unnecessary storage, Ethereum provides a refund for each zeroed element. So in the process of burning, the CHI smart contract erases storage that was filled during minting. With the most efficient storage gas refunds achieved by creating and destroying sub smart contracts, not by direct writes and erases of the storage. Thus enabling any user to burn their CHI tokens and save on gas fees as a result. Keep in mind that when minting CHI tokens and choosing the low gas option, your wallet will…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
