As a “natural step”, the 1inch decentralized exchange aggregator expands to Binance Smart Chain (BSC). A BSC-compatible version of the 1INCH token will be used to bridge the Ethereum (ETH) network.
1inch DEX Aggregator Now Compatible with BSC
1inch revealed on Feburary 25 that the decentralized aggregator will be supporting the Binance Smart Chain (BSC). According to the statement, 1inch users will have access to the same features on the Binance Smart Chain that they already have within the Ethereum network.
All the functionalities of 1inch has been extended to the Binance Smart Chain. To do this, a new version of 1inch token compatible with Binance Smart Chain will be created to bridge between Ethereum and BSC.
Thus when a user sends 1inch tokens to BSC, they will be locked in the ‘’Binance Bridge’’ and a corresponding value in the 1inch tokens on BSC will be unlocked.
During the first 4 weeks, 0.01% of the total supply of 1INCH tokens will be distributed as a reward to liquidity providers.In the near future, 1inch plans to add other pools to its program, in order to increase the protocol’s liquidity and the rewards received by 1INCH token holders.
With this development, users of 1inch aggregators will have access to PancakeSwap, BurgerSwap, Venus, BakerySwap and many other DEX and BSC-based defi protocols.
1inch Migration Due to Rising Ethereum Gas Fees
The 1inch team says integrating BSC is just a first step towards introducing scaling solutions. Can we then consider that 1inch will soon deploy a second layer protocol of Ethereum? This is very likely, especially since Ethereum users are eagerly awaiting the implementation of an effective solution to reduce transaction costs.
Ethereum network has struggled with growing transaction fees with protocols struggling to attract new users. On an average, traders have to endure fees of around $80 to $100 for token swaps. This has made sidechain based solutions like Polygon, Loopring an absolute priority. Since these solutions are intended to reduce costs and improve network scalability.
Launched in 2019, 1inch aggregates Ethereum-based token orders from several decentralized exchanges (DEX) in order to offer the best prices to its users. It is one of the largest decentralized exchange aggregators in terms of volume. With more than $2.3 billion traded in the past 7 days according to Dune Analytics.
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