The innovative protocol will replace a legacy solution from 0x in the 1inch dApp, offering users much more efficient and flexible limit order swap opportunities.
The 1inch Network is thrilled to release a unique, innovative solution – the 1inch Limit Order Protocol. The limit order feature enables users to buy or sell crypto assets at a specific price. A limit order option has been available in the 1inch dApp for a while, but, until recently, it was based on the 0x protocol.
Now, it has been replaced with the much more efficient 1inch Limit Order Protocol.
The 1inch Limit Order Protocol will be available on Ethereum, Binance Smart Chain and Polygon, as well as on all other chains that will be subsequently connected to the 1inch Network. The currently supported token standards are:
- Other token standards could be supported via external extension.
The new protocol stands out among competitors by offering users a superior level of efficiency and flexibility. In addition, unlike legacy protocols, including 0x, the 1inch Limit Order Protocol charges no protocol fee. On top of that, the 1inch Limit Order Protocol is much more gas efficient. For instance, the filling of a simple order will cost 90k of gas and an RFQ order will cost 70k of gas.
The launch of the new protocol will directly benefit users. Chances of seeing their orders executed have substantially increased, while the execution time has been reduced. The absence of fees will be especially noticeable for small limit orders. Previously, a user who has placed a relatively small order would have to wait for quite a while until the price changes. Now, this will take much less time.
The protocol offers an unmatched level of flexibility, which shows in two major features – dynamic prices and conditional execution.
The dynamic price feature allows for a custom price function on separate smart contracts, based on whatever properties users will find relevant, like demand and supply, oracles or anything else.
Conditional execution enables users to specify arbitrary conditions for execution of their orders to maximize earning on trading operations.
In addition, the 1inch Limit Order Protocol enables the fulfillment of requests for quotations (RFQs) – orders for a specific amount of cryptocurrency to buy or sell that are optimized for market makers.
Thanks to the 1inch Limit Order Protocol’s extreme flexibility, its features translate into many specific use cases that could be easily implemented, including stop-loss and trailing stop orders.
Moreover, the 1inch Limit Order Protocol can also support much broader functionalities.
Due to the dynamic pricing feature, the protocol can be used to power auctions. For instance, Maker DAO’s Liquidation 2.0 Module is based on the auction model, and users could take part in Maker DAO auctions, using the 1inch Limit Order Protocol.
Similarly, on top of the protocol, complex, customized market making tools could be built. For example, a tool of that kind would facilitate earning on a pair of assets pegged to the same currency, like USDC and DAI, which are both pegged to the US dollar.
As you can see, there are plentiful opportunities for implementing use cases on the 1inch Limit Order Protocol. If you are a developer interested in building a specific solution on the protocol, you can apply for a grant from the 1inch Foundation, using this form.
Meanwhile, security is one of the most important concerns, and the 1inch Limit Order Protocol has been thoroughly audited. All audit reports can be viewed here. Also, you can visit the 1inch Help Center for more information about the 1inch Limit Order Protocol.
Enjoy the brand new 1inch Limit Order Protocol!
About 1inch Network
The 1inch Network (https://1inch.io/) unites decentralized protocols whose synergy enables the most lucrative, fastest and protected operations in the DeFi space.
The initial protocol of the 1inch Network is a DEX aggregator solution that searches deals across multiple liquidity sources, offering users better rates than any individual exchange. This protocol incorporates the Pathfinder algorithm which finds the best paths among different markets over 50+ liquidity sources on Ethereum, 20+ liquidity sources on Binance Smart Chain and 10+ liquidity sources on Polygon. In just two years the 1inch DEX aggregator surpassed $50B in overall volume on the Ethereum network alone.
The 1inch Aggregation Protocol facilitates cost-efficient and secure swap transactions across multiple liquidity sources.
The 1inch Liquidity Protocol is a next-generation automated market maker that protects users from front-running attacks and offers attractive opportunities to liquidity providers.
The 1inch Limit Order Protocol facilitates the most innovative and flexible limit order swap opportunities in the DeFi space. The protocol’s features, such as dynamic pricing, conditional orders and extra RFQ support, power various implementations, including stop-loss and trailing stop orders, as well as auctions.