1INCH

1inch

Rank #220•Decentralized Exchange (DEX), Exchange-based Tokens, Decentralized Finance (DeFi)

CoinYQ Dossier

A route finder became a market for executing orders

1inch first compared scattered liquidity to find a better swap route. Fusion later let specialist businesses compete to execute a user’s signed order. Resolver competition took the place of the user submitting a transaction, and people who locked 1INCH could choose which participant to support. As a route finder became an execution market, admission, rewards and the authority to move funds became new questions.

A route is a calculation before it is a transaction

Classic Swap begins away from the chain. Pathfinder compares pools, depths and splits, then returns calldata aimed at the Aggregation Router. The router executes the chosen sequence on-chain. One click feels like one protocol even though pricing logic, API availability, approvals and execution live in different places.

Limit Order Protocol made the split explicit. A maker signs an EIP-712 order and an off-chain database exposes it; no vault reserves the assets. A taker later pays gas to fill on-chain. The model removes custody from order placement while leaving balance, allowance and database availability as failure points.

Fusion recruits a market between signature and settlement

Fusion attaches a descending Dutch auction. Resolvers choose when a price covers gas and risk, compete to fill, and normally pay the user's execution gas. The flow is simpler, but an order may expire and still depends on auction settings, available resolvers and settlement code.

Competition has gates. Settlement checks whitelist and timing rules; PowerPod delegation helps determine eligibility, while KycNFT and registry ownership add administrator-controlled edges. Foundation resolver terms add an off-chain agreement. Competition among participants does not mean absence of admission rules.

A lock manufactures power, but power has destinations

Staking locks 1INCH for one month to two years. Two years produces 0.3162 UP per token, one year 0.1778 and expiry 0.1. A staker may delegate to governance or one resolving pod, so the same power cannot support every venue at once.

Early exit can destroy up to 90% of the lock. Resolver discipline follows another ladder: warning, then bans of 1, 7, 30 or 365 days for gas-policy breaches. The sources do not describe confiscating resolver stake for those breaches. Calling both slashing erases a meaningful distinction.

Delegation yield is also narrower than an advertised APY. A resolver creates and funds its own farm. Its performance and willingness to distribute rewards stand between a delegator and payment; the token and DAO do not guarantee that return.

Choosing an executor is not the same as running the service

The DAO moves from forum discussion through five-day polling and a seven-day Snapshot decision; reviewed guidance requires 100,000 UP to open the final proposal. Safesnap can execute approved actions, yet treasury transfers still pass through a 12-signer Safe with a 7-of-12 veto design.

Degensoft operates the interface, Foundation sets resolver terms, and Labs develops software. Deployed contracts and registries have their own owners and versions. Fusion therefore changed, first of all, how a user gets an order executed. A user can rely on competing resolvers rather than submit the trade, while a staker can support a particular participant. That choice did not become a single authority over the routing service, treasury and every contract update.

How the project changed

2020-12-25
The token arrives after the router
1INCH launches with 1.5 billion minted, 6% circulating and most supply locked.
2021-12-02
Treasury execution gains a multisig layer
The plan describes a DAO Treasury Safe with 12 signers and a 7-of-12 veto.
2022-04-06
The mint path is burned
Destruction of the mint function fixes the documented 1.5 billion ceiling.
2022-12
Fusion turns routing into a resolver auction
Signed Dutch-auction orders let resolvers compete and normally sponsor gas.
2025-10-27
The interface names its operator
Updated terms identify BVI company Degensoft Ltd. as interface operator.

Evidence and primary sources

Last evidence review: 2026-09-05

What is 1INCH?

1inch is a family of Ethereum and EVM trading protocols and interfaces. Classic Swap asks the off-chain Pathfinder service to compare liquidity and split a route, then supplies calldata for an on-chain Aggregation Router. Limit Order Protocol stores a maker's EIP-712 signature off-chain until a taker fills it on-chain. Fusion adds a Dutch auction in which approved resolvers compete to fill the signed order.

The 1INCH token is a separate governance and staking instrument. It is not required for an ordinary swap. Locking it creates decaying Unicorn Power for DAO votes or delegation to one resolver pod. Labs builds software, Foundation supports governance and resolver arrangements, the DAO votes, treasury signers execute Safe transactions, and Degensoft Ltd. operates the reviewed 1inch.com interface.

What problem does 1INCH solve?

Liquidity is fragmented across pools and price curves. A single venue can quote poorly or lack depth. Pathfinder calculates a route off-chain and splits volume, while the router performs the chosen calls on-chain. Limit orders solve a different problem: a maker signs intent without depositing funds into an order vault.

Fusion changes who bears execution work. Resolvers watch a descending Dutch-auction price, decide when a fill is economic and normally submit the transaction themselves. That can remove a separate gas payment from the user's flow, but it introduces whitelist, timing, competition and settlement-contract dependencies. The improvement creates a governance question: who qualifies to resolve, and who can change the surrounding registries?

How does 1INCH work?

The token launched on 25 December 2020. All 1.5 billion were minted at genesis; 6% circulated initially and 94% was locked. Final allocation was 30% community incentives, 14.5% network growth, 22.5% core contributors/team and 33% backers. The mint function was burned on 6 April 2022. Allocation schedules do not prove today's liquid supply or legal ownership.

A one-month to two-year lock creates Unicorn Power that decays. Examples give 0.3162 UP per 1INCH for two years, 0.1778 for one year and 0.1 after expiry. UP may support governance or one resolver pod at a time. Early exit can forfeit up to 90%; resolver gas-cap breaches instead receive warnings and bans of 1, 7, 30 or 365 days. Current documents do not describe taking resolver stake for gas violations.

Governance uses discussion, polling and Snapshot: five days for phase-three polling, seven days for the final vote and 100,000 UP to create a Snapshot proposal. Safesnap can carry approved actions on-chain, while the treasury still has a 12-signer Safe and 7-of-12 veto design. Contract owners, resolver registries, app routing and new deployments remain additional control points. A 1INCH vote matters, but it is not a universal upgrade key.

Key facts

Ethereum contract: 0x111111111117dC0aa78b770fA6A738034120C302.
All 1,500,000,000 1INCH were minted at genesis; mint was burned on 6 April 2022.
Launch on 25 December 2020 began with 6% circulating and 94% locked.
Allocation: community incentives 30%, network growth 14.5%, core contributors/team 22.5%, backers 33%.
Classic uses off-chain Pathfinder routing and on-chain Aggregation Router execution.
Limit orders are off-chain EIP-712 signatures filled on-chain; maker funds are not reserved.
Fusion uses Dutch auctions and approved resolvers that normally sponsor execution gas.
1INCH is not required merely to execute a swap.
Locks run from one month to two years and create decaying Unicorn Power.
Early unlock loss can reach 90%; gas-policy violations use bans rather than documented stake confiscation.
DAO voting, treasury multisig, contract owners, resolver whitelist and interface operation are separate authorities.
1INCH grants utility and governance participation, not equity, dividends or treasury redemption.

Official links

Official website Whitepaper Block explorer X / Twitter Reddit GitHub

Related coins

Frequently asked questions

Do I need 1INCH to swap?

No. Aggregation can be used without holding the token. 1INCH matters for staking, governance and resolver delegation.

Is Classic Swap fully on-chain?

Execution is on-chain, but Pathfinder discovers the route off-chain and returns router calldata. Users rely on both routing infrastructure and deployed contracts.

Does a limit order lock my tokens?

No. Assets remain in the maker's wallet until fill; a changed balance or allowance can make the order unfillable.

Is Fusion guaranteed gas-free?

Resolvers normally pay execution gas, but orders can expire. Gas sponsorship does not guarantee a fill or price.

Can staking rewards be slashed?

Early unlock can lose up to 90%. Resolver gas violations are warnings and temporary bans, not documented on-chain confiscation of delegated stake.

Who pays resolver APY?

Each resolver can create and fund its own farm. It is not protocol-guaranteed yield.

Can DAO voters upgrade everything?

No blanket right is documented. Votes, contract owners, multisig signers, registries, deployments and interface routing have distinct roles.

Does 1INCH represent company ownership?

No reviewed source grants shares, dividends, redemption or a claim on Foundation or treasury assets.

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