The world of cryptocurrency is evolving at a rapid pace, driven by innovation and the growing demand for more efficient, secure, and user-friendly trading solutions. As decentralized finance (DeFi) continues to gain momentum, tools that enhance trading efficiency have become essential. One such solution is the 1inch Network, a decentralized exchange (DEX) aggregator designed to optimize crypto trades across multiple platforms.
At its core, 1inch scans numerous liquidity sources to deliver the best possible prices for token swaps—minimizing slippage and maximizing returns for users. Whether you're a seasoned DeFi participant or new to the space, understanding how 1inch works and how to access its native token, 1INCH, can significantly improve your trading experience.
Understanding Decentralized Exchanges (DEXs)
Before diving into how 1inch operates, it's important to distinguish between centralized exchanges (CEXs) and decentralized exchanges (DEXs).
Centralized exchanges like Binance or Coinbase function similarly to traditional financial markets. They use order books to match buyers and sellers and often hold users’ funds in custodial wallets. While convenient, this model introduces counterparty risk and reliance on a central authority.
In contrast, decentralized exchanges operate on blockchain-based smart contracts. These platforms are non-custodial, meaning users retain full control of their assets. DEXs like Uniswap or SushiSwap enable peer-to-peer trading without intermediaries. However, liquidity can be fragmented across different platforms—leading to suboptimal pricing and higher transaction costs.
👉 Discover how DeFi tools like 1inch are reshaping crypto trading efficiency.
This fragmentation is precisely the problem 1inch was built to solve.
How Does 1inch Work?
1inch is not a standalone exchange but a DEX aggregator. It pulls liquidity from over 60 sources on Ethereum, 30 on Binance Smart Chain, and additional networks like Polygon, Arbitrum, and Optimism. By splitting large trades across multiple DEXs, 1inch ensures users receive the most competitive rates with minimal slippage.
The platform uses an intelligent routing algorithm called Pathfinder, which analyzes real-time data across liquidity pools to identify optimal trade paths. This means instead of executing a single swap on one exchange, your trade might be divided into smaller parts executed across several platforms—resulting in better overall pricing.
Additionally, 1inch supports limit orders, allowing traders to set specific price conditions for their trades. This feature brings advanced trading capabilities typically found on centralized exchanges into the decentralized ecosystem.
Another key innovation is Moonbeam, 1inch’s proprietary Automated Market Maker (AMM) protocol. Moonbeam helps mitigate issues like front-running—where malicious bots exploit transaction visibility by submitting higher-fee transactions to jump the queue. Through a mechanism known as virtual balances, Moonbeam reduces arbitrage opportunities and protects traders from losses due to price manipulation.
1INCH Tokenomics: Utility and Governance
Launched on December 25, 2020, the 1INCH token plays a central role in the network’s governance and ecosystem incentives. It is an ERC-20 token built on the Ethereum blockchain, with a total supply cap of 1.5 billion tokens. As of now, approximately 535 million 1INCH tokens are in circulation.
Unlike some tokens with fixed maximum supplies, 1inch采用了 a controlled emission model where new tokens are gradually released through community incentives and staking rewards.
Key Uses of the 1INCH Token
- Governance: Token holders can vote on protocol upgrades, fee structures, and future development directions.
- Staking: Users who stake their 1INCH tokens gain voting power and earn rewards from platform fees.
- Liquidity Mining: Participants can provide liquidity to designated pools and earn additional 1INCH tokens as incentives.
- Fee Discounts: In certain cases, holding or using 1INCH can reduce transaction fees within the ecosystem.
To enhance scalability and reduce gas costs on Ethereum, 1inch introduced CHI, a "gas token" that leverages Ethereum’s storage refund mechanism. CHI is automatically minted when gas prices are low and burned during high-fee periods, helping users save on transaction costs. Importantly, CHI is not an investment asset—it serves purely as a utility tool.
The 1inch Wallet: Seamless DeFi Access
Beyond aggregation, 1inch offers its own mobile wallet—1inch Wallet—available on both iOS and Android. Designed for simplicity and security, this non-custodial wallet gives users complete control over their private keys and digital assets.
Key features include:
- Support for thousands of ERC-20 tokens and major cryptocurrencies
- Built-in token swapping powered by the 1inch aggregation engine
- Multi-wallet management with support for multiple addresses
- No KYC requirements, registration, or service fees
- One-click interface for easy asset management
The wallet integrates directly with DeFi protocols, enabling users to access lending platforms, yield farms, and NFT marketplaces—all from a single interface.
👉 Learn how tools like 1inch Wallet simplify secure crypto management.
How to Buy 1INCH in Australia
For Australian investors interested in acquiring 1INCH tokens, several trusted fiat-to-crypto gateways make the process straightforward.
You can purchase 1INCH using AUD through regulated platforms that support bank transfers, credit/debit cards, or PayPal. The process typically involves:
- Creating an account on a compliant exchange
- Completing identity verification (KYC)
- Depositing AUD via bank transfer or card
- Searching for “1INCH” and placing your buy order
Many platforms also offer recurring purchases and price alerts—ideal for long-term investors using dollar-cost averaging strategies.
Once purchased, you can either hold 1INCH in your exchange wallet or transfer it to a non-custodial wallet like MetaMask or the official 1inch Wallet for enhanced security.
Why Invest in 1INCH?
- Strong DeFi fundamentals: As DEX usage grows, aggregators like 1inch become increasingly critical infrastructure.
- Active governance model: Community-driven development fosters transparency and alignment with user interests.
- Innovative tech stack: Features like limit orders and gas optimization set it apart from competitors.
- Growing ecosystem: Expansion across multiple blockchains increases adoption potential.
Frequently Asked Questions (FAQ)
Q: Is 1inch safe to use?
A: Yes. As a non-custodial platform, 1inch never holds your funds. All transactions occur directly from your wallet via smart contracts. Always verify URLs and avoid phishing sites.
Q: Can I stake my 1INCH tokens?
A: Yes. Staking allows you to participate in governance and earn rewards. You can stake directly through the 1inch app interface after connecting your wallet.
Q: What blockchains does 1inch support?
A: 1inch operates on Ethereum, Binance Smart Chain, Polygon, Arbitrum, Optimism, Gnosis Chain, and others—making it one of the most cross-chain compatible DeFi tools available.
Q: Do I need to pay gas fees when using 1inch?
A: Yes, since trades occur on public blockchains, standard network fees apply. However, using CHI tokens can help reduce Ethereum gas costs during peak times.
Q: Is 1INCH available on major exchanges in Australia?
A: Yes. Several Australian-friendly crypto platforms list 1INCH and allow purchases with AUD. Look for exchanges with strong security records and regulatory compliance.
Q: How is 1inch different from Uniswap or PancakeSwap?
A: While those are standalone DEXs, 1inch aggregates prices from them (and many others), ensuring you get better rates than trading directly on any single exchange.
👉 Start exploring decentralized trading tools with confidence today.
By combining cutting-edge aggregation technology with robust community governance, 1inch Network stands out as a vital player in the future of decentralized finance. For Australian investors looking to diversify into high-potential DeFi projects, adding 1INCH to your portfolio could offer both utility and long-term growth potential.