About 1inch Network
1inch Network is a decentralized exchange (DEX) aggregator that allows users to access multiple DEXes through a single platform. It aims to provide users with the best prices for their trades by aggregating liquidity from various DEXes and executing trades across multiple platforms. 1inch Network is built on the Ethereum Blockchain and utilizes smart contracts to facilitate the exchange of digital assets.
The Fusion upgrade aims to improve the 1inch Swap Engine by allowing users to place orders with a predetermined price and time range without incurring network fees. This can help users about saving on transaction costs and potentially increasing their profits. In addition, the upgrade includes updates to the staking contracts and tokenomics of 1inch Network, which may improve the security and stability of the platform.
The 1inch Resolver Incentive Program is a program designed to encourage the use of the Fusion mode by offering refunds on the gas fees spent on filling users’ orders in Fusion mode until December 31. The program is intended to help resolvers, which are entities that help facilitate the execution of orders on 1inch Exchange by providing them with a financial incentive to use the Fusion mode.
Protection from MEV
The maximum extractable value (MEV) refers to the maximum value that can be extracted from block production in excess of the standard block reward and gas fees. In other words, it is the value that can be extracted from block production that is not accounted for in the normal reward and fee structures of the blockchain. MEV can be exploited by malicious actors who can use it to manipulate the order of transactions in the blockchain, which can have negative consequences for users of the network.
In the Fusion mode, effective protecting ways for users’ trades from MEV are offered, so professional traders should not consider MEV.
Sergej Kunz, the co-founder of 1inch Network, stated about the Fusion mode:
“This is a huge step forward for the entire DeFi space. Fusion makes swaps on 1inch dramatically more cost efficient, as users won’t have to pay network fees, plus, an extra layer of security is added, protecting users from sandwich attacks. Our aim is to make users’ DeFi experience as smooth as never before. Thanks to the 1inch Swap Engine and Fusion mode, now, everyone gets incredible UX with a high degree of security.”