One of the widely followed altcoin projects in Turkey, 1inch Network (1INCH), made a new announcement. According to the announcement, 1inch has made a major update to its Swap Engine. Here are the details…
Big innovation in altcoin project
1inch Network, the leading decentralized finance (DeFi) aggregator, announced a major update around the 1inch Swap Engine. The name of the update in question was Fusion. The Fusion upgrade aims to provide cost-effective, secure and profitable exchanges for crypto investors. The Fusion mode on the 1inch Swap Engine allows DeFi traders to place orders at a specified price and timeframe in advance without paying network fees.
Additionally, the upgrade includes network improvements such as up-to-date staking contracts and token economy. As a decentralized trading and matching system, the 1inch Swap Engine connects DeFi users. It also provides liquidity for crypto trades through professional market makers. Explaining the purpose behind the Fusion upgrade, 1inch Network co-founder Sergej Kunz said:
Because users don’t have to pay network fees, Fusion makes trading at 1inch significantly more cost-effective and adds an additional layer of security, protecting users from “sandwich attacks”.
A new order matching system is being used
Contrary to the traditional centralized approach, the latest upgrade of 1inch refers to decentralization. It invites investors to transactions that are carried out in a completely permissionless and trustless manner. Thus, they perform secure trades that are not hidden by the third party. According to the announcement, 1inch offers unlimited liquidity. It also uses a new decentralized order matching approach based on the Dutch auction model, as shown below.
Fusion mode allows users to exchange tokens on various DEXs without any network fees. The upgrade also allows users to choose the order execution time based on their unique needs. Also, the Fusion mode provides protection against the maximum extractable value (MEV). MEV refers to the maximum value they will get from block production that exceeds the standard block reward and gas fees.
Bridge attacks threaten DeFi industry
Alongside the upgrade, 1inch has launched the 1inch Resolver Incentive Program, which will help resolvers reimburse the gas fee they spent to fill users’ orders in Fusion mode by December 31, 2022.
There is no doubt that 1inch has started to take action against bridge attacks. Security experts believe that bridge attacks will continue to pose a major challenge for the DeFi industry in 2023. Theo Gauthier, founder and CEO of Toposware, pointed to the reliance on the chains that bridges connect. He pointed out that for this he “naturally has a vulnerability”.