1inch Exchange is one of the best priced DEX aggregators on the market. In this review and guide, Bitcoin Magazine will teach you how to use the 1inch exchange and provide you with information on transaction fees and order limits per 1inch.
What is 1inch trading platform?
The 1inch exchange is a DEX (decentralized exchange) aggregator. It splits trades between different DEXs to achieve the best possible rate.
1inch currently supports more than 20 liquidity protocols. Some of the major exchanges are Uniswap, Mooniswap, Balancer, Curve, and Kyber.
You can use 1inch.exchange to swap (swap) tokens at the best price in the market. 1inch also allows users to create trade orders for free and earn interest by lending cryptocurrency and providing liquidity to liquidity pools. (Liquidity offer not available on 1 inch v2.)
Transaction fees on stransaction 1inch
As a synthetic DEX, 1inch itself does not charge any fees for token swaps, fees will be paid for swaps rather than depending on the DEXs from which liquidity is generated.
For example, Uniswap charges a flat fee of 0.30% for trading orders, AMM of 1inch “Mooniswap” has a fee of 0.30% and Balancer has a fee that varies depending on the pool. For the fees of other DEXs, you can check out this list.
You may be wondering how 1inch makes money if by itself it doesn’t charge any fees for swaps. 1inch receives a portion of the fees that go to the liquidity sources they have partnered with.
What is more important today for DEX users are gas fees. Due to congestion in the Ethereum network, you may have to pay high transaction costs. To reduce this burden, you can enable Chi Gastoken on the platform to reduce your transaction costs.
Wallet supports 1 inch exchange
1inch is an Ethereum-based DEX aggregator. Users access the services provided by 1inch without the involvement of 1inch or a third party.
You can connect your Ethereum wallet to 1inch and start swapping your own tokens. 1inch supports various crypto wallets.
1inch supported wallets include: MetaMask, Trust Wallet, Torus, FortMatic, WalletLink, Portis, Authereum, UniLogin, WalletConnect, Bitski, MEW and Ledger.
You can use 1inch with multiple Web3 wallets, mobile wallets or Ledger.
How to use the exchange 1inch
Step 1: Open your wallet and connect it to the 1inch exchange
First log in to your MetaMask wallet on your browser or open another 1inch powered wallet that you want to connect to 1inch.
Go to 1inch and click the “connect wallet-connect wallet” button located at the top right corner of the page.
Accept the terms and click MetaMask. It can also be considered a Web3 wallet if 1inch has not discovered MetaMask. In that case you can refresh the page.
Step 2: Confirm the connection on MetaMask
When you click on MetaMask on 1inch, a message will pop up on MetaMask to confirm. You just need to select the address you want to use and connect your wallet to 1inch via the MetaMask message.
Step 3: Swap tokens on 1inch exchange
First, select the coin you want to swap and enter the number of coins. Then select the coin you want to swap to. In the example below, I swap Ethereum to AAVE.
First you need to unlock the token you want to swap in order to be able to swap if you haven’t done it before. In the example below, since I have unlocked Ethereum before, there is no sign of locking before ETH.
Only Balancer is used for trading order which gives the best rate at the moment. Sometimes the trade order can be divided among several DEXs to get the best ratio.
You can set custom gas fee by clicking on setting icon and also use Chi Gastoken to pay lower gas fee.
If you don’t want your trades to fail due to price fluctuations, you can increase your slippage rate. To perform a swap, click on the “swap token” button and confirm the transaction on MetaMask.
Unlimited Unlocks on 1inch Exchange
You need to give the platform permission to use the tokens you want to swap by clicking “unlock – unlock” or “infinity unlock”. “Endless unlock” will save you gas costs as you won’t need to unlock it again for future transactions.
On the other hand, allowing the platform to spend only a certain amount with the “unlock” option is safer but more expensive in the long run if you do more swaps. You should especially unlock only a certain amount on new/untrusted Dapps.
Trading order limit on exchange 1inch
If you don’t want to do a token swap at the market rate, you can set a trade limit using the 1inch per inch limit feature. (Limited orders are not available at the moment, but will be available on 1-inch v2.)
To set an order limit, select the pair and enter the number of coins. You also need to enter a time period when your order will be active and the buyer can execute it.
Lending and liquidity pool of 1inch exchange
Not only can you swap tokens at the best rate per 1inch, but also lend your crypto or provide liquidity to liquidity pools to earn interest. (Lending is currently not available on 1inch v2).
Click on the 1-inch “earn” page to view lending and liquidity pools and filter them by token and platform. You can view daily, weekly and monthly return rates, and provide liquidity to lending and liquidity pools of various Dapps such as Aave, Compound, and Uniswap.
According to Dappgrid
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