Manage episode 290192970 series 2661796
A decentralized exchange, usually referred to as a DEX, is a platform for exchanging cryptocurrencies. Depending on trading volume for different coins, some DEXs are more liquid than others. On the one hand you can freely swap unlisted tokens and maintain full control over your private keys and wallet information. On the other hand, without the right supply and demand it’ll be difficult to swap a particular coin at the right price.
1inch Exchange is a decentralized exchange aggregator that can split a single trade transaction across multiple DEXs. Their Pathfinder API ensures users get the best price by using a discovery and routing algorithm to find the best possible paths for token swaps and then splits the swap across multiple exchanges and market depths of the same exchange. 1inch uses multiple liquidity sources, including private liquidity providers, to ensure there is sufficient liquidity for all swaps on their platform. If the rate of a trade becomes more expensive than the user has confirmed from the UI, the algorithm can cancel part of the route and simply return the unswapped tokens to the user’s wallet.
In today’s episode we talk with Anton Bukov, co-founder of 1inch. Anton was previously a senior smart contract engineer at NEAR Protocol and chief blockchain engineer, consensus researcher at MultiToken. We discuss the pros and cons of decentralized exchanges, splitting cryptocurrency swaps across multiple exchanges with 1inch Exchange, and the growth of decentralized finance.
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