1inch

The term "1inch" in crypto refers to a decentralized exchange (DEX) aggregator. 1inch aims to optimize trading by offering users access to the most efficient and cost-effective liquidity across various DEXs. Essentially, it aggregates liquidity from multiple DEXs to provide users with the best possible rates for their trades.

The core function of 1inch is to split a single trade across multiple DEXs to ensure the best execution price for the user. This process, known as "DEX aggregation," helps traders avoid high slippage and ensures that they get the most favorable rates when swapping tokens.

Example: Suppose a user wants to exchange Ethereum (ETH) for a different token, such as Chainlink (LINK). Instead of manually checking the prices on different DEXs and executing the trade on a single platform, the user can use 1inch. 1inch will automatically split the trade across various DEXs to find the best price for the desired amount of tokens.

Case: If a user is swapping a large amount of tokens, executing the trade across multiple DEXs via 1inch can significantly reduce slippage and save the user money compared to using a single DEX with limited liquidity. This illustrates how 1inch enhances the efficiency and cost-effectiveness of decentralized trading.