Anton Bukov, co-founder of 1inch Network, said, “In the next 3-5 years the DeFi industry will grow
It’s only been two years since its inception, but the 1inch Network Decentralized Exchange Protocol (DEX) has exceeded a cumulative trading volume of $ 85.8 billion. At the Hackathon in New York City in May 2019, 1inch co-founders Anton Bukov and Sergej Kunz developed a prototype of a DEX aggregator that became the basis of the network. A DEX aggregator is a platform that generates liquidity from multiple DEXs, thus offering better token swap rates with less slippage.
This network has a 57.40% market share in the DEX aggregation industry and has over 820,000 users. According to CoinMarketCap, 1inch Exchange is the eighth largest DEX in the world with a trading volume of $ 277 million in the last 24 hours.
On Monday, Bukov joined the Cointelegraph Markets Pro community for an exclusive Q&A on Discord.
Cointelegraph Markets Pro: Do you think DEX will serve most of the crypto users or will this segment be dominated by fake trading and bots?
Anton Bukov: I believe the DeFi industry will grow massively in the next three to five years. It is growing fast, but the benefits of peer-to-peer technology can and will be experienced on a broader basis.
Of course, let DEXs dominate over CEXes [Centralized Exchanges], certain requirements must be met in the future. DEX and blockchain protocols have to work 100 times faster than they do now. Users need to understand the core concept of the technology. The user journey must be shortened and become more beginner-friendly.
1inch Network is a collection of powerful and composable DeFi tools that enable both experienced and inexperienced DeFi users to maximize the financial opportunities of Web3 with clear UX and contracts.
CT Markets Pro: What makes 1inch stand out from the crowd?
AWAY: 1inch is designed to use all of the DeFi space. And we work hard and fast to achieve our mission. Our goal is to unite traders and liquidity providers and enable profitable transactions for both parties. The core function of 1inch is to aggregate data from various decentralized exchanges and combine the best prices from all bids with the required liquidity. In April 2021, we released the 1-inch iOS wallet – an omnidirectional mobile platform that offers an easy-to-navigate interface with secure storage, transaction and staking functions. This all-in-one wallet has been designed from the ground up to optimize interaction with 1-inch features.
CT Markets Pro users: As a DEX aggregator, are there any current plans to minimize the fees available across the network? What are the future plans beyond 1 inch?
AWAY: In fact, the 1inch Foundation recently set up a gas refund program for 1inch users.
AWAY: High returns are often associated with high risks. Users deposit more money; this definitely reduces their profits.
CT Markets Pro: Binance Exchange holds a majority stake in 1INCH and accounts for 44% of the administrative votes. How does 1inc plan to fix this?
AWAY: Binance works on behalf of its users; Binance never and will not vote, AFAIK.
CT Markets Pro: How does 1inch solve pre-run programs?
AWAY: The 1 inch liquidity log has a unique feature that protects users from this type of attack and ensures that users get the most out of every trade. To protect the predecessors from such attacks, the 1-inch liquidity log actually has a “virtual rate”; You can check this article for details.
CT Markets Pro: How difficult will it be to switch 1inch to Eth2? Is every liquidity provider obliged to shift their positions?
AWAY: No DeFi developer should wait or prepare for ETH 2.0. The DeFi scaling takes place via L2; The fragmented environment of ETH 2.0 makes no sense for DeFi.
I consider ZK Rollups to be a real scaling solution, as the complexity of the ZK transaction check is fixed and independent of the complexity of the transaction itself. It sounds magical, but it’s true.
CT Markets Pro users: Are there any plans for multi-chain transactions / transactions? Bridge etc.
AWAY: I recently had an interesting thread on Twitter about 1 inch cross chain futures; Please take a look at:
1 / In the last few months I’ve been asked a lot about the future of cross-chain for @ 1 inch. Dozens of projects are actively building bridges and some of them have applied for 1 inch grants or just asked for my advice / opinion. This thread gives my opinion on the subject. https://t.co/25Rgy5cYok
– Anton Bukov ️ (@ k06a) October 25, 2021
CT Markets Pro users: What do you think of Uniswap v3?
AWAY: They significantly increase the capital efficiency of their pools. This is the ultimate solution for LPs (Liquidity Providers). But I see traders with really bad exchange rates and a lot of slippage on Uniswap. About creating a DuneAnalytics dashboard. The use of aggregators is not understandable for everyone, since 1inch integrates just over 80 sources in the Ethereum mainnet.
CT Markets Pro users: More than 1 inch. Are you involved in other projects?
AWAY: Only advice / advice on specific projects. But working full time for the next big thing at 1 inch.
CT Markets Pro users: Building a DEX aggregator can seem like an incredibly complicated undertaking. Are you using a single oracle as a price feed, or is there some other way to calculate prices?
AWAY: We have our own off-chain oracle to get the price off the chain.
CT Markets Pro users: How has the explosion in gas charges affected transactions per inch?
AWAY: You can set up a new phrase or just enter your wallet address to try it out in read-only mode. Since it is a wallet, it cannot create transactions or generate signatures without a private key / seed phrase.
CT Markets Pro users: How are you working with Layer 2 solutions to make 1 inch practical for smaller businesses? Do you have an unusual technology? Sidechain, optimism, synthesis, synthesis ZK, what have I never heard of?
AWAY: Personally, I prefer ZK roles that are waiting for ZKSync 2.0 from Matter Labs. But for sure, 1inch will support either popular / mainstream L2 / sidechains: users / tokens / DEXes / active.
CT Markets Pro users: In hardware, there are currently several solutions to connect to the DEX by connecting the Metamask to the hardware and then to the DEX. Do you think we can connect directly to the hardware without middleware?
AWAY: You can use hardware wallets through the WalletConnect protocol, even on cell phones with the Ledger Live app. Check out our cool open source control panel.
CT Markets Pro: What are current innovations or exciting developments around the 1inch network?
AWAY: We’re working hard to have another protocol soon and we’re also building 1 Inch for Organizations – 1 Inch Pro.