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The most useful DeFi tool is 1inch

· 2 min read

Right now, I am on the 1inch website. If you remember, I have already used it in one of the earlier modules to swap AVAX for USDC when demonstrating how to work with wallets and different networks. But why did I use 1inch back then, while in the previous lesson I used a specific exchange for a swap?

It is important to understand that 1inch is not a decentralized exchange.

1inch is a DEX aggregator.
As I explained earlier, each blockchain has many decentralized exchanges with their own trading pairs, liquidity, volumes, and fee structures. All of them compete for market share.

1inch’s purpose is to find the best possible exchange rate for your swap.

It analyzes all DEXs available on a given network and selects the option with:

  • the highest liquidity,
  • the lowest fees,
  • the smallest slippage,
  • and the best overall execution price at that moment.

For example:

  • If I want to swap AVAX for USDC, 1inch may route the trade through Sushiswap.
  • If I want to swap USDT to USDC, it may choose Trader Joe.

For each swap, 1inch automatically selects the most optimal exchange route and may even split the trade across several DEXs to achieve a better result.

What I recommend doing right now​

Add 1inch to your browser bookmarks and always use it for any token swap.

If you perform all your swaps through 1inch:

  • you will save a significant amount of money over time,
  • you will always get the best exchange rate,
  • you will pay the lowest possible fees,
  • and you will avoid mistakes such as choosing a DEX with low liquidity.

Why 1inch is one of the most useful tools in DeFi​

  • It works across most major blockchains.
  • It lets you swap any token for any other token at the best available price.
  • It reduces fees and slippage.
  • It helps you use your capital as efficiently as possible.

At this moment, 1inch is one of the essential tools you should use regularly to improve your returns and save capital.

These materials are created for educational purposes only and do not constitute financial advice.