1INCH Network is a leading decentralized exchange (DEX) aggregator platform in the decentralized finance (DeFi) space. It offers users the best prices and low transaction fees from over 116 decentralized exchanges across multiple blockchains. It operates on Ethereum, Binance Smart Chain (BNB Chain), Polygon, and Solana networks. 1inch collects data from various liquidity pools to execute swap transactions in the most efficient way. 

Decentralized exchanges allow users to trade crypto assets without intermediaries. However, prices and fees vary across exchanges. 1inch eliminates this complexity by using advanced algorithms to find the best prices and minimal gas fees. 

Who Are the Founders? 

1inch Network was founded in 2019 by Russian developers Sergej Kunz and Anton Bukov at the ETHGlobal New York hackathon. Leveraging their expertise in DeFi and smart contracts, they developed arbitrage bots and grew the platform. In 2020, the project became a non-profit organization managed by the 1inch Network Foundation. Today, 1inch leads the DeFi ecosystem in technology and security. 

How Does It Work? 

1INCH uses its proprietary algorithm called Pathfinder, splitting transactions across multiple DEXs to find the best price. When you select tokens to swap, 1inch optimizes for the best price and lowest fees. The platform supports ERC-20, ERC-721, ERC-1155, and BEP-20 tokens. 

You can perform transactions in standard, fast, or instant modes. Also, limit orders enable automatic trades at your target price. Liquidity providers earn rewards by staking funds on the platform. 

Ecosystem and Security 

1INCH aggregates over 116 DEXs and liquidity pools on Ethereum, BNB Chain, Polygon, and Solana, offering users best prices and low fees. 

Security is a priority for 1inch. Its code is regularly audited by renowned firms like OpenZeppelin, CertiK, ConsenSys Diligence, and SlowMist. The platform employs advanced protections against front-running attacks. 

The 1INCH ecosystem includes: 

• 1inch Aggregation Protocol: Gathers liquidity from multiple DEXs across blockchains like Ethereum, BNB Chain, Polygon, and Solana using Pathfinder to provide optimal swap rates and low fees. 
• 1inch Liquidity Protocol: A next-generation automated market maker (AMM) designed for capital efficiency and better use of liquidity. 
• 1inch DAO: Decentralized governance body where 1INCH token holders vote on protocol decisions. 
• 1inch Foundation: Non-profit entity supporting the network’s growth with grants and financial support. 
• 1inch Labs: Open-source protocol development team managing ongoing innovation and updates. 

Ecosystem Products Details 

1INCH Network offers various innovative DeFi products beyond DEX aggregation: 

• DEX Aggregator: Aggregates over 116 DEXs for best prices and low fees using Pathfinder. 
• Limit Order Engine: Executes automatic trades at user-set prices. 
• Fusion+ and CHI Gas Token: Optimize Ethereum gas fees using CHI token. 
• Liquidity Pools and Farming: Offers fees and 1INCH token rewards to liquidity providers. 
• 1inch Wallet: Decentralized wallet for secure asset management. 
• DAO and Governance: Enables 1INCH holders to participate in governance. 

1INCH Network bridges DeFi and traditional finance by launching a Web3 debit card in partnership with Mastercard and Baanx. This card lets users convert crypto in their 1inch Wallets into fiat for everyday spending. 

Key Features of the 1inch Card: 

Versatile Use: Available as physical and virtual cards for online shopping, contactless payments, and ATM withdrawals worldwide where Mastercard is accepted. 

• Instant Conversion: Crypto assets convert to fiat instantly at payment, ensuring fast and secure transactions with user control. 
• Bridge Between Web2 and Web3: Enables DeFi users to use crypto in traditional payment systems, promoting broader crypto adoption. 
• Availability: Initially launched in the UK and European Economic Area (EEA), with a waitlist for users. 

Token Use and Investors 

The 1INCH token is designed for platform governance and development, not just investment. Token holders vote in the DAO, contribute to network security, and earn liquidity mining rewards. 

1INCH raised $14.8 million over four funding rounds. Key investors include Pantera Capital, Binance Labs, and Galaxy Digital. In December 2021, a $175 million Series B led by Amber Group was completed, with participants like Jane Street, VanEck, Fenbushi Capital, Alameda Research, Celsius, Nexo, Tribe Capital, and Gemini Frontier Fund. 

1inch How to Use? 

To use 1INCH, connect an Ethereum-compatible wallet (MetaMask, Ledger, Trust Wallet, etc.), select token pairs to trade, and let the platform optimize for best prices and lowest fees. Confirm the swap to complete. 

Previously, CHI token was used to optimize gas fees, but now Fusion mode offers gasless transaction options. Limit orders allow automatic trading at target prices. 

Token Features and Market Data 

1INCH is an ERC-20 governance and utility token of the 1inch Network. Holders have a say in platform management and use it for transaction fees and staking. 

• Total Supply: 1.5 billion 1INCH 
• Circulating Supply: Approximately 1.39 billion 

1inch Token distribution: 

• 30% Community incentives 
• 22.5% Core team and contributors 
• 18.5% Supporters 
• 14.5% Network growth fund 
• 12.2% Secondary supporters 
• 2.3% Small supporters 
• Core Token Functions 

1. Utility: Used in Fusion mode for transaction prioritization and protocol access, showing token’s platform value. 
2. Governance: Used to manage all current and future protocols of 1inch Network, allowing holders to influence development and settings. 
3. Multi-chain: Available on Ethereum and BNB Chain via a bridge without additional minting, enhancing accessibility across blockchains. 

Social Media and Communities 

• • Website
  • Telegram
  • Twitter
  • Discord

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What is Cetus Protocol?

Cetus Protocol offers a decentralized finance (DeFi) solution based on the Concentrated Liquidity Management model. It is built on the Sui and Aptos blockchains, providing users with more efficient trading and liquidity provisioning opportunities. The platform strives to create a sustainable ecosystem for both developers and investors in the DeFi space.

What is Concentrated Liquidity?

In a typical Automated Market Maker (AMM), liquidity is evenly distributed across the entire price curve (0, ∞). In contrast, concentrated liquidity is liquidity allocated within a specific price range. A concentrated liquidity protocol like Cetus allows liquidity providers to contribute their liquidity within a narrower price range, optimizing the utilization and profitability of their capital.

What is Move?

Move is a new, Rust-based open-source programming language designed to write secure smart contracts. Initially developed by Facebook to support the Diem blockchain, Move is platform-agnostic and provides common libraries, tools, and developer communities for blockchains with different data and execution models. Move focuses on security, avoiding common Web3 vulnerabilities like re-entrancy attacks, malicious tokens, and counterfeit token approvals. Both Aptos and Sui blockchains are developed in Move, contributing to the growing MoveVM ecosystem.

Cetus Protocol’s Benefits to the Ecosystem

One of the key advantages of Cetus is the liquidity efficiency offered by its concentrated liquidity algorithm. Both liquidity providers (LPs) and traders benefit from this design:

• Liquidity Providers (LPs): Can earn transaction fees more efficiently by concentrating liquidity within an active price range.
• Traders: Enjoy low slippage when trading close to the spot price.
• Developers: Can easily integrate with Cetus’ open-source smart contracts and SDKs, tapping into the platform’s efficient liquidity source.

How Does Cetus Protocol Work?

Cetus Protocol utilizes an AMM model, but it allows liquidity providers to concentrate their liquidity within specific price ranges, enhancing the overall efficiency compared to traditional AMMs.

• Concentrated Liquidity Management (CLMM): Liquidity is concentrated in a narrow price range, offering higher returns for LPs.
• Swap Transactions: The protocol allows token swaps with low transaction costs.
• Advanced Order Types: Users can leverage features like limit orders and range orders.
• Liquidity-as-a-Service: Cetus enables easy integration with other projects, supporting broader adoption.

You can review the project’s whitepaper for more in-depth details.

What is Cetus Protocol’s Goal?

Cetus aims to innovate in the decentralized finance space by providing low-cost, user-friendly trading opportunities. It seeks to reach a broader audience, especially within the Sui and Aptos ecosystems, and build a sustainable liquidity infrastructure for DeFi.

Who Created Cetus Protocol?

Cetus Protocol was founded by Henry Du, who led the development of an open, programmable, and modular liquidity protocol. The project also benefits from the contributions of experienced teams, particularly those behind the Sui and Aptos networks.

Who are Cetus Protocol’s Investors?

Cetus has attracted strategic investors at an early stage, including notable crypto-focused venture capital firms like OKX Ventures, KuCoin Ventures, SUI, and Animoca Brands. The core development communities of Sui and Aptos also played a significant role.

Cetus Protocol Tokenomics

The tokenomics of Cetus Protocol is based on a dual-token model:

• CETUS: The primary token of the ecosystem, with a total supply of 1 billion tokens. It is used for transaction fees, liquidity incentives, and staking rewards.
  • Distribution:
    • Community & Incentives: 40%
    • Development & Operational Funds: 30%
    • Early Investors: 15%
    • Reserve & Further Initiatives: 15%
• xCETUS: A staking model for long-term incentives.

The token distribution is designed to enhance transparency and build a sustainable community-driven ecosystem.

Conversion and Redemption

CETUS and xCETUS can be converted back and forth under certain conditions:

• CETUS to xCETUS: CETUS can be converted to xCETUS at a 1:1 ratio at any time.
• xCETUS to CETUS: Converting xCETUS back to CETUS requires a vesting period. The conversion ratio increases based on the vesting period chosen by the user.
  • Minimum 15-day vesting: 1:0.5 conversion rate.
  • Maximum 180-day vesting: 1:1 conversion rate.

Users cannot redeem CETUS until the vesting period is fully completed. Any unclaimed CETUS after the vesting period will be lost and directed to the Eco Treasury, which supports the protocol’s long-term sustainability and community incentives.

Conclusion: A Comprehensive Solution for DeFi

Cetus Protocol is not just a DEX, but also provides infrastructure services for blockchain projects, leveraging the performance advantages of Sui and Aptos. With its CLMM model, Cetus offers a more efficient use of liquidity compared to traditional DeFi protocols, providing better returns for liquidity providers and a smoother experience for traders. Its robust tokenomics, strategic partnerships, and user-focused design position Cetus as a significant player in the decentralized finance ecosystem.

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The post What is Cetus Protocol? | A DEX Platform appeared first on Coin Engineer.