In a surprising turn of events, the synthetic DEX protocol 1inch made headlines yesterday after selling 11,000 ETH, valued at approximately $21 million, to test the new features of its Fusion upgrade. The cryptocurrency community on Twitter was left bewildered when a significant transaction appeared on Etherscan.
Swiftly addressing the concerns, 1inch confirmed that they were indeed behind the transaction. Sergej Kunz, the co-founder of 1inch, shed light on the matter, stating:
“Our team is currently testing new features in Fusion mode. Fusion allows users to customize the duration, auction amount, and start and end times of an auction. This type of strategy proves extremely useful when users aim to rebalance assets for DAOs, hedge funds, or investment funds.”
The @1inch team sold 11,000 ETH ($20,975,572) 4 hours ago. pic.twitter.com/kCZkqHt3n9
— ASXN (@asxn_r) July 5, 2023
Having embarked on this self-initiated experiment with Fusion, the results indicate that transactions were executed at a more favorable average price compared to merely swapping at the market rate. The 1inch Network introduced the Fusion upgrade in late 2022 to enhance security and optimize exchange profits. 1inch leverages a novel matching mechanism based on the Dutch auction model, incorporating market rates and price impact. Explaining the new upgrade, Sergej Kunz stated:
“Fusion makes swapping on 1inch significantly more cost-effective, as users are exempt from paying network fees. Additionally, the system has an added layer of security to protect users from sandwich attacks.”
The Fusion upgrade represents an important step for 1inch as it aims to offer its users improved trading experiences and increased transactional efficiency. By enabling customization of parameters such as auction duration and amount, 1inch empowers users to make more strategic decisions and achieve their desired asset balances.
The 1inch protocol has garnered attention for its commitment to innovation and user-centric approach. By introducing Fusion, the platform is effectively addressing two crucial aspects of decentralized finance (DeFi): cost optimization and security. With the elimination of network fees, users can now enjoy reduced transaction costs while maintaining the integrity and safety of their assets.
Market observers and industry experts are closely monitoring the progress of 1inch’s Fusion upgrade, recognizing the potential it holds for transforming the landscape of decentralized exchanges. The successful execution of the recent ETH sale reaffirms 1inch’s commitment to delivering cutting-edge solutions that benefit its users and the broader cryptocurrency community.
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