I've noticed that many people are interested in how 1inch works and why this aggregator is even needed. Let me explain briefly based on my experience.

1inch is essentially an intelligent routing platform for decentralized exchanges. When you want to swap one token for another, the platform doesn't just pick the first available liquidity pool. Instead, it analyzes offers from multiple DEXs simultaneously and finds the optimal route for your trade.

When I first tried 1inch, I noticed that gas fees and slippage were actually lower than if I traded directly. This works thanks to the Pathfinder algorithm — it splits your transaction across several liquidity protocols to minimize losses.

Another interesting feature is 1inch Fusion. It allows combining multiple operations into a single transaction. This saves time and gas if you need to perform a complex set of actions.

Regarding the 1INCH token, it’s not just a speculative asset. The token is used for protocol governance, staking, and getting discounts on fees. The maximum supply is fixed at 1.5 billion tokens — a deflationary model, with part of the fees used for buybacks and burning.

The advantages are obvious: better rates, lower gas costs, user-friendly interface, support for many tokens and networks. But there are also risks. Like any DeFi protocol, 1inch is vulnerable to smart contract exploits. Plus, on Ethereum, gas can be expensive, and the volatility of the 1INCH token itself also impacts its economics.

Overall, if you actively trade altcoins, 1inch is a useful tool. The savings on fees can be significant, especially with large volumes. It’s worth trying if you haven’t used it yet.