Decentralized exchanges (DEXs) offer a powerful alternative to centralized platforms, delivering enhanced security, user-controlled assets, and privacy. With the rise of Decentralized Finance (DeFi), users now have access to a vast array of tokens without relying on traditional financial intermediaries. However, as the number of DEXs and liquidity pools grows, so does the complexity of finding optimal trading rates across fragmented markets.
Thin order books and low liquidity can lead to significant slippage—especially for large trades—making it difficult to execute orders efficiently. Enter 1inch Exchange, a non-custodial aggregator designed to solve these challenges by sourcing liquidity from multiple DEXs and optimizing trade execution.
This comprehensive review explores how 1inch works, its core features, fee structure, supported wallets, and overall legitimacy in today’s DeFi ecosystem.
What Is 1inch Exchange?
1inch is not a standalone decentralized exchange but a DEX aggregator that connects to multiple platforms like Uniswap, SushiSwap, Balancer, and Kyber Network. By pooling liquidity from various sources—including both public DEXs and private liquidity providers—1inch finds the most efficient routes for token swaps.
Instead of manually checking different exchanges for better prices, users can rely on 1inch to automatically split large orders across multiple venues, minimizing slippage and maximizing returns. The platform supports over 250 cryptocurrencies, primarily ERC-20 tokens on Ethereum, making it a go-to tool for experienced DeFi traders seeking optimal pricing.
👉 Discover how top traders optimize their crypto swaps with smart routing technology.
Key Advantages of Using 1inch
- No trading, deposit, or withdrawal fees – The platform itself doesn’t charge for swaps.
- CHI Gas Tokens – Reduce Ethereum network gas costs significantly.
- User-friendly interface – Simple navigation even for intermediate users.
- Aggregated liquidity – Combines order books and liquidity pools for better pricing.
- Strong security record – No reported breaches since launch.
Potential Drawbacks
- Fiat currency unsupported – Only crypto-to-crypto trades are available.
- "Infinity Unlock" feature risks – Could be exploited if not used carefully in future updates.
How Does 1inch Work?
Imagine you want to buy 10,000 ETH at $3,000 each, but the DEX you're using only has 7,000 ETH available at that price. Without aggregation, your remaining 3,000 ETH would fill at a higher rate—say $3,050—costing you an extra $150,000 due to slippage.
1inch prevents this by splitting your order and routing parts of it across multiple exchanges where better prices exist. It uses advanced algorithms to analyze real-time liquidity and execute partial fills simultaneously, ensuring minimal price impact.
This process dramatically reduces market slippage, especially for high-value trades, and ensures users receive the best possible average rate across the DeFi landscape.
1inch Exchange Fees
One of the standout aspects of 1inch is that it does not charge any platform fees for trading, deposits, or withdrawals. However, as with all Ethereum-based DEXs, users must pay network gas fees in ETH to process transactions on the blockchain.
Since 1inch routes trades through other DEXs, the final gas cost depends on the selected path and underlying exchange. To help mitigate these costs, 1inch offers the CHI Gas Token, which can reduce gas expenses by up to 43% during periods of high network congestion.
👉 Learn how to cut your transaction costs using innovative gas optimization tools.
It's recommended to:
- Always check estimated fees before confirming a swap.
- Enable CHI Gas Token usage in advanced settings.
- Consider timing trades during low-traffic hours for lower gas prices.
Core Features of 1inch
1INCH Token: Utility & Governance
The native 1INCH token is an ERC-20 asset used for governance and utility within the ecosystem. With a maximum supply capped at 1.5 billion and a current circulating supply of over 415 million, it plays a key role in platform decision-making.
Token holders can:
- Vote on protocol upgrades and treasury allocations.
- Stake tokens to earn rewards.
- Participate in community-driven development grants.
At the time of writing, 1INCH trades around $0.97, with a market cap exceeding $400 million—reflecting strong community adoption and utility demand.
CHI Gas Token: Reduce Transaction Costs
Gas fees on Ethereum fluctuate based on network demand. The CHI Gas Token helps users hedge against spikes by allowing them to "store" gas when prices are low and use it when prices rise.
Key benefits:
- Save up to 1% when minting CHI compared to GST2.
- Save up to 10% when burning CHI versus standard gas tokens.
- Can be purchased directly on 1inch or other major exchanges.
Activating CHI in advanced settings is highly recommended for frequent traders aiming to reduce long-term costs.
MooniSwap: Innovative AMM Design
MooniSwap is 1inch’s own Automated Market Maker (AMM) that aims to reduce impermanent loss for liquidity providers—a common issue on platforms like Uniswap. It introduces delayed execution mechanics that discourage front-running and promote fairer pricing.
While not as widely used as other AMMs, MooniSwap represents an important innovation in DeFi design philosophy focused on equitable value distribution.
Supported Wallets & How to Connect
1inch integrates seamlessly with popular Web3 wallets, including:
- MetaMask
- Ledger
- WalletConnect
- Binance Chain Wallet
- Opera Wallet
- KeepKey
- Arkane
- Authereum
How to Connect Your Wallet
Connecting takes just a few steps:
- Go to app.1inch.io
- Click “Connect Wallet” in the top-right corner.
- Accept terms and privacy policy.
- Choose your preferred network (e.g., Ethereum Mainnet).
- Select your wallet provider.
- Confirm the connection request in your wallet app.
Once connected, your wallet address appears at the top right—you can view transaction history, copy your address, or disconnect anytime.
How to Trade Tokens on 1inch
After connecting your wallet, follow these steps to make a swap:
Step 1: Basic Settings
- Select the token you’re selling and the one you want to buy.
Choose between:
- Maximum Return: Finds the best price route (ideal for large trades).
- Lowest Gas Cost: Prioritizes cheaper transactions (best for small amounts).
Step 2: Advanced Settings
Click the gear icon to access:
- Activate CHI: Use CHI tokens to lower gas fees.
- Disable Partial Fill: Prevent split executions (useful for price-sensitive orders).
- Slippage Tolerance: Adjust acceptable price deviation (default is usually 2%).
- Swap routing details, charts, and comparison tools.
Step 3: Execute Swap
Review the estimated output and price impact. If satisfied, click “Swap”, confirm in your wallet, and wait for blockchain confirmation.
Is 1inch a Legitimate DEX Aggregator?
Yes—1inch is a trusted and secure platform in the DeFi space. Its transparent codebase, consistent performance, and lack of security incidents since launch reinforce its credibility. By aggregating liquidity and optimizing trade paths, it addresses real pain points in decentralized trading.
Its innovations—like CHI Gas Tokens and MooniSwap—show a commitment to solving systemic issues like high fees and impermanent loss.
Frequently Asked Questions (FAQ)
Q: Does 1inch charge trading fees?
A: No. 1inch does not charge any platform fees for swaps, deposits, or withdrawals. You only pay Ethereum network gas fees.
Q: Can I use fiat currency on 1inch?
A: No. 1inch supports only cryptocurrency-to-cryptocurrency trades. Fiat on-ramps must be done externally before connecting your wallet.
Q: Is the 1INCH token worth investing in?
A: The 1INCH token has utility in governance and staking. While its value fluctuates like any crypto asset, it remains integral to the platform’s long-term vision.
Q: How does 1inch reduce slippage?
A: It splits large orders across multiple DEXs and liquidity sources to find the best combined rate, minimizing price impact.
Q: What is the CHI Gas Token used for?
A: CHI helps reduce Ethereum transaction costs by letting users pre-pay for gas during low-price periods and use it later during congestion.
Q: Can I connect hardware wallets like Ledger?
A: Yes. 1inch supports Ledger and other hardware wallets via WalletConnect or direct integration.
👉 Start optimizing your DeFi trades with intelligent routing and low-cost execution today.