1inch Network – a protocol that unites decentralized projects – launched a spot price aggregator to extract data for assets traded on DEXs on the blockchain. The tool provides a liquidity-weighted average of token spot prices. To avoid issues within transactions, 1inch recommended using it off-chain.
1inch’s Newest Instrument
In a recent document seen by CryptoPotato, 1inch explained that the spot price aggregator aims to solve information-related tasks. Such include the visualization of asset valuations extracted from the blockchain in the interfaces of websites and applications.
The tool consists of smart contracts that interact with various decentralized exchanges to receive token liquidity-weighted spot prices. The instrument also handles wrapped assets such as wETH, cDAI, aDAI, and more.
In case there is no direct liquidity between two assets, the spot price aggregator calculates rates for those coins that use a connector token.
The feature supports many DEXs on Ethereum, Binance Smart Chain, Polygon, Avalanche, Optimistic Ethereum, Arbitrum, and Gnosis Chain. While other similar solutions could face a lag of up to several minutes, 1inch’s instrument displays a token’s price immediately, the team asserted.
The 1inch dApp interface and the Pathfinder algorithm are already using the tool. Technically, the spot price aggregator could be integrated into any place where a token price is displayed and needs to be converted into US dollar or other fiat currency.
It offers numerous potential use cases that allow investors to view the value of their tokens. If traders want to execute more complex tasks, they should use the 1inch Aggregation Protocol API, the team advised.
The Previous Investment Solution
Earlier this month, the protocol launched an investment tool called 1inch Earn to stimulate liquidity providers. The feature aims to provide more efficient use of capital compared to Automated Market Maker (AMM) pools. The team asserted that 1inch Earn provides “deep liquidity at any point” because of its integration in the 1inch Pathfinder algorithm.
The concept of the instrument has been in practice in the 1inch Network Treasury since September 2021 under the name Trading Strategies.
The team behind the protocol raised hopes that 1inch Earn could improve decentralization and governance across the network:
“The launch of 1inch Earn is set to be a major step towards improving the sustainability of the entire network and stepping up its decentralization and community-led governance, while also working as a lucrative earning tool for users.”
- Automated Market Maker
- Binance Futures
- Binance Smart Chain
- Fiat currency
- market maker
- Smart Contracts
- Trading Strategies
- US Dollar