1inch is a decentralized exchange aggregator that operates on the Ethereum network and more recently on the Binance Smart Chain (BSC). It sources liquidity from various exchanges and is able to split a single trade transaction across multiple DEXs, which can often result in better trade execution prices for users due to minimized slippage.
A major strength of 1inch lies in its ability to provide users with efficient trade routing. This ensures optimal trading conditions by tapping into the liquidity of various DEXs, and reduces the need for users to manually check different exchanges for the best trade price. Additionally, the platform's integration with multiple blockchains (Ethereum, BSC, etc.) allows it to reach a wider audience and provide more trading pairs.
The platform's native token, 1INCH, serves multiple purposes within the ecosystem. It provides a governance mechanism, giving token holders the ability to vote on various protocol parameters and development proposals. It also offers utility within the platform, such as reduced trading fees. Show Less