It doesn’t really seem like the decentralized financial sector plans to slow development by 2020. Interest in the sector continues to grow despite Ethereum’s high transaction fees, and the total value booked in space continues to peak from time to time, peaking recently at $ 51 billion.
1inch is a decentralized exchange, or DEX aggregator, that entered the DeFi scene in the second half of 2020. The platform algorithm is looking for the cheapest exchange rates between DEX, which has been integrated into its ecosystem. 1inch is also running Mooniswap Auto Marketer.
According to the data, January was the biggest month for the DEX, and 1 inch played a role in reaching this milestone. It currently ranks second in terms of the number of sellers after Uniswap.
To see how 1 inch could hit such a hit, Cointelegraph spoke with Sergey Kunets, the platform’s co-founder. The interview is available on the Cointelegraph YouTube channel.
How did it all not start?
Cointelegraph: How exactly did you get into the cryptocurrency and at what point did you realize the industry needed a 1-inch DEX complex?
Sergey Koons: Going back to the origins we started from, the initial idea was actually from Anton, who suggested implementing it in the hackathon in 2019 – to create a single place to list all the different exchanges, so you can choose only where you can exchange it for the best price.
But I also had an idea to improve it by dividing the amount we would swap into smaller portions and substituting multiple sources at the same time to lower the price bar, because the effect on price was the biggest problem in the DeFi room at the time.
“At the hackathon, I spoke with Vitalik Buterin and Hayden Adams from Uniswap, and it got over them. They said, ‘Yeah, do it. Everything looks good. ”
In fact, we built it for ourselves. Anton changed all the time. He needed the best rate, and before that I was playing with arbitrage robots. Somehow it was very helpful to others. At the hackathon, we didn’t win big prizes, just a small prize: $ 300. So I was able to pay for the plane tickets.
CT: So how long did it take to put everything together? One of the problems with the DeFi industry is that protocols are quickly created and then people get burned for bugs.
SK: Anton and I have 16-17 years of professional software development and architecture experience. Anton was more experienced in the field of cryptocurrency and algorithms. Actually, we built it in two nights. And a day before bed, I designed most of the interface – the application. Anton wrote an algorithm and smart contracts, we collected it and we worked without sleep for two nights.
We started in December 2018 in Singapore. We created a night project that has garnered multiple sponsorship awards. So we didn’t have any expectations. ”
We have just started building. We are used to building other things, but here we just wanted to solve our problem. And finally, we got that big push because it solved a big problem in the DeFi room.
The icon is included
On December 24, 2020, 1inch distributed control of the platform and its toolbar. A total of 90 million INCH tokens were distributed to those who met certain criteria set by the platform.
CT: The project became really popular after the release of the 1INCH code. You don’t consider the token as an investment, but people will keep speculating on it, and eventually someone might get burned. Did you take this aspect into account?
Silvia Cattori: Yeah, we got a lot of negative comments from the community – from people who bought at the start of release day. In fact, a 1-inch box released a token and started distributing. The idea behind distribution was to make the symbol more decentralized.
We don’t see the economic value behind the symbol. So 1INCH equals 1 inch, nothing else. In fact, we didn’t even start with the science of symbolism. The idea of owning the 1INCH token right now is primarily to engage in governance. ”
So, you have some kind of ticket, and with that ticket you have access to change some settings in the protocol. Of course, these people can, for example, participate in discussions in the admin forum and make suggestions.
An economic disaster
After the tokens were distributed, a 1-inch lucky user received approximately 10 million 1-inch, which was about 11% of the total and at that time was equal to about 27 million dollars.
Kuntz told Cointelegraph, “This guy spoke to us. He gave us a lot, supported us and introduced us to other projects. He came to us to help us improve our community and so forth.”