Decentralized exchange aggregator platform 1inch has announced the launch of 1inch Fusion 2.0, which significantly reduces the cost of swapping different cryptocurrencies.
1inch Fusion, set to be launched in December 2022, allows users to swap tokens across different networks without paying gas fees, while also benefiting from liquidity access across the entire crypto space and protection from miner-extractable value (MEV). All Fusion swaps are executed by relayers, professional and verified traders who compete with each other for the right to execute swaps, thus providing users with the most favorable exchange rates.
1inch Fusion represents an intent-based approach, where users declare the goals they wish to achieve and professional market participants use the most suitable strategies to execute them. In 1inch Fusion, users indicate their intent to make a swap, and the protocol ensures optimal execution through relayers. Partial fill functionality enables large swaps to be executed more efficiently and provides better exchange rates than the current on-chain market, as different relayers fill different parts of the orders. The intent-based approach ensures that users do not need to pay any gas fees even if their orders expire.
Sergej Kunz, co-founder of 1inch, stated that the settlement contract layer has been removed and replaced with a lightweight settlement extension. As a result, users can interact directly with relayers, thereby obtaining better prices on token swaps.
At the same time, this increased efficiency means that even users making smaller swaps can benefit from better exchange rates, just like users making larger swaps.
Another improvement helps provide better swap prices while speeding up transaction speed, meeting user demands, and reducing the possibility of order expiration. In 1inch Fusion 2.0, the price curve is adjusted based on the market gas price. Previously, the fluctuation in gas costs between signing a transaction and executing it could result in order expiration due to gas price volatility. Now, gas prices are immediately taken into account, and necessary price curve adjustments are made based on market conditions.
As a result, the execution speed of orders has increased by 75%, and the likelihood of swap failures has decreased. The price curve adjustment feature is a unique technology developed by 1inch, and we are excited to bring it to the market.
Finally, due to the upgraded Fusion SDK order constructor and the interface interacting with the Fusion API, 1inch Fusion has been seamlessly integrated. Fusion 2.0 is now available in the 1inch dApp: enjoy the most efficient swaps!
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