In the world of cryptocurrency, the efficiency and cost of exchanging tokens has always been one of the biggest concerns for users. To meet this demand, 1inch’s latest innovative intent-based solution, 1inch Fusion 2.0, significantly improves users’ swap execution efficiency and speed, and helps users save a lot of cryptocurrency exchange costs.
Breakthrough switching s olutions
Launched in December 2022, 1inch Fusion is a solution that allows users to exchange tokens across various networks without paying gas fees, while enjoying liquidity across the crypto space and maximum extractable value (MEV) protection. All Fusion exchanges are executed by resolvers, professional and verified traders who compete with each other for the right to execute exchanges, thus providing users with the best rates.
Since 1inch Fusion launched, nearly 20 resolvers have joined, sourcing liquidity from across the cryptocurrency market and executing swaps totaling over $25 billion. 1inch Fusion embodies an intent-based approach that allows users to clearly state what they wish to achieve, and then professional market participants execute it using the most appropriate strategies.
Improve exchange efficiency
As we continue to strive to improve the efficiency of decentralized swap settlement, version 2 of 1inch Fusion introduces significant improvements that make swaps even more efficient than before. The settlement contract layer has been removed and replaced with a lightweight settlement extension, which allows users to interact directly with the resolver to obtain better token swap prices.
According to 1inch’s internal testing, order settlement in Fusion 2.0 is 10%-35% cheaper than previous versions (depending on the token and amount). 1inch Fusion 2.0 is approximately 10% more efficient than competing products, allowing the parser to provide users with better redemption rates.
Advantages of Partial Execution
1inch Fusion’s fractional execution capabilities enable large swaps to be executed more efficiently and at better speeds than current online markets. Different parsers execute different parts of the order so that the user does not have to pay any gas fees even if the order expires.
In one instance we show the exchange of 5,436 WETH to USDC. Within 1 minute, several parsers performed 11 partial executions, with exchange amounts ranging from 8.5% to 30.1% of the total exchange amount in each block. Therefore, the user receives 40,524 USDC* more than if converted at the current market rate.
Faster execution speed and lower expiration probability
In 1inch Fusion 2.0, the price curve adjusts based on market gas prices, an improvement that helps increase swap prices while speeding up transactions and reducing the likelihood of orders expiring. Previously, changes in gas costs between signing a transaction and executing it could cause orders to expire due to gas price fluctuations. Gas prices are now taken into account immediately and the price curve is adjusted if necessary based on market conditions, so order execution is 75% faster and orders are less likely to expire.
Adjusted Price Curve: This unique technology allows 1inch to stand out in the market. The adjusted price curve reacts to market conditions and corrects execution prices accordingly, promoting faster execution of orders. This means that users no longer have to wait for the resolver to affect order execution due to gas price fluctuations.
Leverage innovative 1inch technology to your advantage
Integration with 1inch Fusion becomes completely seamless thanks to the upgraded Fusion SDK (order constructor and interface for interacting with the Fusion API). Fusion 2.0 is already available in 1inch dApp, use it and enjoy the most efficient exchange on the market! For guidance on using 1inch Fusion, see this FAQ.
Additionally, you can use 1inch Fusion in your projects to increase swap efficiency. The 1inch Fusion API is available on the 1inch Developer Portal. If you are interested in integrating the Fusion API, please contact us.
Conclusion
With the launch of 1inch Fusion 2.0, the efficiency and cost of exchanging tokens will increase significantly. This innovation not only provides users with a better trading experience, but also further promotes the development of decentralized finance. Looking to the future, 1inch will continue to strive to provide users with the highest quality services so that every user can get the most value in the world of cryptocurrency.