CryptoWonders
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CryptoWonders

2020: The Year of DeFI

I believe many friends have received a generous “Christmas gift” this Christmas:

The decentralized transaction aggregator 1inch officially released governance and practical token 1inch, and sent 6% of the total circulation on the same day, plus 0.5% of the liquidity mining plan (a total of 97.5 million) to 1inch’s old users in the form of airdrop.

There are more than 55200 addresses in total, and they are eligible for free 1inch token. The average number of tokens obtained from these addresses is about 1629. Qualified addresses can guarantee at least 600 1inch tokens.

According to the average price of 1inch on the day of launch (about US $2), it is equivalent to that 1inch has distributed a total of US $200 million of “Christmas red packets” to users, with an average of US $1300 per user, which is equivalent to receiving a Mac, which is on a par with uni’s “iPhone 12 airdrop”.

According to the officially issued token allocation rules, 1inch.exchange In fact, the total amount of 1.5 billion old token users have been able to get 1inch of the product.

Now it seems that this year’s UNI, LON and 1inch are rewards for participants who have a keen sense of smell and are willing to try new things. They are also large revenues in addition to the unique currency hoarding transactions in the circle this year.

Therefore, for us, if we practice our DeFi products more often, we will not only meet our own needs, but also inadvertently bury the grass-roots thread of unexpected happiness in the future.

What is DEX aggregator?

There are also many friends who don’t know much about 1inch. It is a DEX aggregator on Ethereum network. By integrating the liquidity of Airswap, Uniswap, Uniswap2, Kyber, Curve, Oasis, 0x, dForce swap and other DEX protocols, it can help users find the best transaction path (low slip point and low latency).

So what’s a DEX aggregator? It is mainly for large capital users to collect and find the optimal transaction path from liquidity providers (DEX) in the market, so as to reduce the comprehensive transaction cost of users.

For example, we have 10000 ETH to be converted into DAI. Because of the large amount of this transaction, if we directly convert it on a single DEX such as Uniswap and Sushiswap, the sliding point may be very high, and the comprehensive cost of completing the transaction will be very unfriendly. At this time, 1inch aggregators can be used.

This large order can be divided into n small orders through such an aggregator as 1inch, and the optimal price can be found in different DEX respectively. In this way, the overall transaction slip point is reduced, and it is also one click aggregation, avoiding the tedious manual operation.

Therefore, this is more important for transactions with large amount of capital. After all, every 1% or 1% of the sliding point cost saved may be a large amount.

When one inch aggregator is used, if the amount of capital is large, the optimal transaction price can be found in different DEX batches, and the extra gas cost can be fully compensated by the low transaction slip point.

But, the small amount of token exchange of ordinary users is more cost-effective on a single DEX such as Uniswap or Sushiswap, and many people are basically out of touch with 1inch. This can be a simple comparison of verification.

Taking the exchange amount of 1 ETH level as an example, in comparison, the comprehensive transaction cost of 1inch is as high as US $31.26, which is more than several times of the single DEX transaction cost of Uniswap, Sushiswap and Bancor in the same period.

However, a transaction aggregator like 1inch is a rigid demand track with real existence value in the context of the continuous expansion of the volume of DeFi, especially in the context of strong transaction demand.

Still take 1inch as an example, the daily trading volume on November 26 exceeded 110 million US dollars. As of the day of airdrop, 1inch.exchange, It took 18 months to hand over a brilliant report card with a total turnover of more than 7.5 billion US dollars, a total of 57000 users, a daily number of users of more than 5000, and a cost saving of up to 2.2 million US dollars for users of gas.

In addition to 1 inch, the current transaction aggregator track is also booming: Matcha, Meta Mask Swap, Paraswap, Insta DAPP and so on. In particular, with the built-in transaction aggregation function, the traffic entrance with inherent advantages such as Meta Mask wallet will undoubtedly contribute greatly to the popularization and promotion of the follow-up aggregators.

The DeFi world is a paradise for innovators and technologists

The contract of Uniswap was officially deployed on November 2, 2018. It was born less than two years ago. Its founder Hayden Adams is also an Ethereum developer.

The same is true for 1inch. In June 2019, Sergej Kunz and Anton bukov announced the creation of inch.exchange on ETH global NYC. Since then, the two founders have led 1inch from small to large in just 18 months. Until August this year, Binance labs and Galaxy digital led the financing of $2.8 million, and now the online valuation is up to hundreds of millions of dollars.

The DeFi world seems to be proving Jobs’s “Minimalism” — Uniswap was just a few dozen lines of code at the beginning, which started the origin of AMM type DEX, and thus stirred up a pool of spring water in the DeFi world. In the follow-up, geeks like AC almost took up most of the innovation of the DeFi circle on their own.

Now in the second round, the head DeFi project basically shows us a mature example of DeFi. They are all technical talents and grass-roots teams. In the early stage, they have accumulated a lot of energy, but in the later stage, they are weak, and the speed of development and growth is extremely fast.

However, the latest community member disclosed that the 1 inch team “intercepted” the handling fee without public disclosure, and in this airdrop, a large number of 1 inch tokens were airdropped to the addresses related to their own interests, which may also explain some problems existing in the current paradigm.

DeFi has created a utopian world where many geeks can freely use their imaginations. At present, people’s desire for innovation of DeFi has temporarily surpassed their opposition to the private virtues of the founding team, so the whole is still an idealistic state of lack of supervision.

In general, 2020 will undoubtedly be a turning point for the blockchain and encryption industry. We are all fortunate to witness the Cambrian explosion of the DeFi world and the unlimited possibilities for the next stage of the industry, especially the air drop of UBI practice attributes such as UNI, 1inch and LON.

DeFi has become a 7 * 24-hour non-stop stage. Let’s wait and see what wonderful plays will be staged next.

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