1inch is a network of decentralized protocols best known for its DEX aggregator, a tool that checks many decentralized exchanges at once and builds a swap route from them. The 1INCH token is separate: a governance and utility token used for voting, staking, and delegation within the 1inch ecosystem.
This guide explains how 1inch finds swap routes, how its Fusion and Fusion+ modes work, what the 1INCH token does, what you pay in fees, and which risks to watch for.
Table of Contents
What Is 1inch?
1inch is a set of decentralized finance (DeFi) protocols and products. Its main job is liquidity aggregation: it pulls prices and liquidity from decentralized exchanges (DEXs) and other sources, then routes your trade through whichever combination looks best at that moment.
Without an aggregator, you’d have to compare exchanges yourself. Prices, liquidity depth, slippage, and gas costs differ from one DEX or pool to the next, and a large trade on a single exchange can move the price against you. 1inch compares the available routes for you.
Keep the network and the token apart. 1inch Network is the whole ecosystem of protocols, apps, and tools. 1INCH is the token. You don’t need to own 1INCH to swap through 1inch.
Who Created 1inch?
Sergej Kunz and Anton Bukov built the first 1inch aggregation prototype at the ETHNewYork hackathon (part of ETHGlobal) in May 2019. That prototype grew into today’s 1inch Network.
Several organizations now work on the project, and none of them is the whole network. The 1inch DAO sets parameters, proposes changes, and makes treasury decisions. The 1inch Foundation, a nonprofit, issued the 1INCH token and supports ecosystem initiatives. 1inch Labs and other contributors develop the open-source software.
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How Does 1inch Work?
1inch offers multiple ways to swap. The three main ones are classic swaps, Fusion, and Fusion+.
Classic Swaps: DEX Aggregation and Pathfinder
Classic swaps run through the 1inch Aggregation Protocol. Its routing algorithm, Pathfinder, looks at prices, liquidity, gas costs, and possible paths across many liquidity sources. If it improves the estimated result, Pathfinder can split one swap across several exchanges, pools, or intermediate tokens. For example, part of a trade might go straight from ETH to USDC on one DEX, while another part goes through a third token on a different DEX.
The route is the most efficient one Pathfinder can find given the available liquidity and conditions when it calculates the quote. That’s not a guarantee of the best possible price. Market movement, slippage, gas, and failed transactions can all change the final result. In classic mode, the swap executes through 1inch’s routing contracts, and you usually pay the network gas fee yourself.
Fusion: Intents and Resolver-Based Swaps
Fusion works differently. Instead of sending a transaction that runs a route, you (the “maker”) sign an order that describes the swap you want. This is called an intent-based swap.
Approved market participants called resolvers then compete to fill your order through a Dutch auction. The rate starts at a level favorable to you and moves over time until a resolver decides to take the order. The resolver pays the settlement gas, and that cost is built into the rate you get.
Because resolvers fill orders instead of your transaction sitting in the public mempool, Fusion protects against front-running and other forms of maximal extractable value (MEV), where bots profit by reordering or copying pending trades.
Fusion+: Cross-Chain Swaps
Fusion+ applies the same intent-based approach to cross-chain swaps. Resolvers coordinate the settlement, while linked escrow contracts on both chains hold the assets.
These escrows use two safeguards. A hashlock releases the funds only when someone reveals a secret, which makes the swap atomic: both sides complete or neither does. A timelock lets assets return to their owners if the swap doesn’t finish within a set time. Fusion+ also uses Dutch auctions and provides MEV protection.
This design avoids relying on a single centralized custodian or a typical bridge that you operate yourself. “Bridge-free” doesn’t mean risk-free, though. Cross-chain swaps still depend on smart contracts, resolvers, and correct execution on both chains.
1inch Products and Practical Use Cases
Beyond swaps, 1inch offers several other tools:
- The Limit Order Protocol lets you sign an order with a target price or other conditions. A taker can fill it later, and smart contracts handle the settlement. This differs from an aggregated market swap, which executes right away.
- Aqua is a shared liquidity protocol that developers can use, released in November 2025. It lets one wallet balance back several liquidity positions or strategies at once. Assets stay in the provider’s wallet until a swap fills, under allowances the provider can revoke. Aqua isn’t a standard single-pool automated market maker (AMM), and shared liquidity isn’t borrowed leverage.
- The 1inch Wallet and developer APIs let people and apps use 1inch features directly. Wallets and other apps often build swaps on top of the 1inch API.
In practice, people use 1inch to get a better rate on a large trade, avoid MEV on a sensitive swap, set a price target with a limit order, or move value between chains with Fusion+.
What Is the 1INCH Token Used For?
1INCH is an ERC-20 token on Ethereum. It isn’t the gas token for any of the networks 1inch supports. You still pay gas in each chain’s native coin, such as ETH on Ethereum.
The token’s documented uses are governance, staking, and delegation. When you stake (lock) 1INCH, you receive st1INCH, which represents your staked tokens, and Unicorn Power (UP). UP measures your influence and depends on lock time: you can lock tokens for up to two years; longer locks earn more UP, and UP decreases as the lock period runs down.
You can use UP in two separate ways:
- Governance delegation lets you vote on DAO proposals or delegate your voting power to someone else.
- Resolver delegation lets you delegate UP to a Fusion resolver. Resolvers need delegated UP to participate in Fusion, and some pay rewards to delegators from their own 1INCH pools.
Rewards from resolver delegation depend on the resolver and aren’t set or guaranteed by 1inch. Withdrawing staked tokens before the lock ends can also carry a penalty.
1INCH Tokenomics: Supply and Distribution
1INCH launched on December 25, 2020, with a retroactive airdrop to qualifying early 1inch users.
The maximum supply is 1.5 billion 1INCH. The entire supply was minted at launch, and the mint function was burned in April 2022, so no one can create more tokens. Circulating supply is a different, smaller figure that changes as tokens unlock over time. Check a current data source for it.
The initial allocation was:
| Allocation | Share |
|---|---|
| Backers | 33% |
| Community incentives | 30% |
| Core contributors and team | 22.5% |
| Network growth | 14.5% |
How Does 1inch Governance Work?
The 1inch DAO sets defined protocol parameters, proposes changes, and decides how to use the DAO treasury. Votes take place on Snapshot, an off-chain voting platform, and voting weight comes from Unicorn Power rather than from simply holding 1INCH.
Because UP comes from staking, holders who lock tokens for longer get more say. Holders who don’t want to vote on every proposal can delegate their governance power to another address.
Which Blockchains Does 1inch Support?
1inch supports many EVM-compatible networks plus Solana. As of October 2026, the 1inch Business documentation lists 17 chains: Ethereum, Arbitrum, Avalanche, Base, BNB Chain, Cronos, Gnosis, HyperEVM, Linea, Monad, Optimism, Polygon, Solana, Sonic, Unichain, zkSync Era, and Arc.
Not every product covers the same chains. Classic swaps, Fusion, Fusion+, Aqua, the wallet, and the API can each support a different set, and the list changes over time. Check the current documentation before you plan a swap on a specific network.
What Fees Do You Pay on 1inch?
What you pay depends on how you swap:
| Action | Who pays network gas |
|---|---|
| Classic swap | You, in the chain’s native coin |
| Fusion and Fusion+ settlement | Usually the resolver, with the cost built into your rate |
| Token approvals, staking, and delegation | You |
| Aqua actions, native-token routes, some Solana routes, and fallback aggregation | Often you |
Gas isn’t the only cost. Price impact and slippage also affect what you receive, especially on large trades or thinly traded tokens. Review the full quote, including the minimum amount you’ll receive, before you confirm.
How to Use 1inch: A Step-by-Step Swap Example
A typical swap from ETH to USDC on Ethereum goes like this:
- Open the 1inch app and connect a self-custody wallet, such as MetaMask.
- Choose the network, here, Ethereum.
- Select ETH as the token you’re selling and USDC as the token you’re buying, then enter the amount.
- Review the quote. Check the rate, route, estimated gas, and slippage setting.
- Choose the swap mode if the app offers one, such as Fusion or a classic swap.
- If you’re selling an ERC-20 token rather than ETH, approve the token first. This lets the 1inch contract spend that token from your wallet.
- Confirm the swap in your wallet.
- Wait for the swap to settle, then check your wallet balance.
Your funds stay in your wallet until the swap executes. Still, verify the token contract address, especially for less common tokens, and make sure you’re on the official 1inch site.
How Does 1inch Compare With Using a DEX Directly?
| 1inch aggregator | Single DEX | |
|---|---|---|
| Liquidity sources | Many DEXs and pools | One exchange’s pools |
| Routing | Can split a trade across venues and paths | Uses that exchange’s own routing |
| MEV protection | Available through Fusion | Depends on the exchange |
| Gas | Classic: you pay; Fusion: usually the resolver | Usually you pay |
| Extra layer | Adds 1inch’s contracts and routing logic | Only the DEX’s own contracts |
For small swaps of popular tokens, a single large DEX may give a similar result. Aggregation tends to help more with larger trades, less common pairs, or when prices differ across exchanges.
Is 1inch Safe? Risks and Precautions
1inch is non-custodial, so you keep control of your funds until a swap executes. That doesn’t remove every risk.
- Smart contracts can have bugs, even audited ones.
- Token approvals can be abused if you approve a malicious contract or leave large approvals open. Review and revoke approvals you no longer need.
- Slippage and price impact can reduce what you receive, especially for thinly traded tokens.
- Malicious or fake tokens can copy real names and tickers. Always check the contract address.
- Fusion orders can go unfilled, and limit orders may never reach their target price.
- Cross-chain swaps add complexity, with more contracts and steps that must work correctly.
- Aqua liquidity providers face market risk and impermanent loss.
Phishing sites that copy the 1inch interface are another common threat. Bookmark the official site and never share your seed phrase. Audits and MEV protection reduce specific risks, but they don’t make any DeFi system risk-free.
Final Words
1inch helps you find efficient swap routes across many decentralized exchanges, and its Fusion and Fusion+ modes add resolver-based execution, MEV protection, and cross-chain swaps. The 1INCH token is optional for swapping. It powers governance, staking, and resolver delegation, with a fixed maximum supply of 1.5 billion. Before you use any mode, check the quote, the network, and the token address.
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Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
