HomeCrypto1inch launches Fusion update to improve swap security and profitability
1inch launches Fusion update to improve swap security and profitability
December 25, 2022
Leading decentralized finance (DeFi) aggregator 1inch Network has announced a major upgrade – Fusion – around its 1inch Swap Engine. Fusion update aims to provide convenient, safe and profitable swaps for cryptocurrency investors.
The Fusion Mode in 1inch Swap Engine allows DeFi investors to place orders with a predefined price and time frame without paying any network fees. Additionally, the update includes network improvements such as updated staking contracts and tokenomics.
As a decentralized trading and matching system, the 1-inch trading engine connects DeFi users and provides liquidity for cryptocurrency trades through professional market makers. Explaining the intent behind the Fusion update, 1inch Network co-founder Sergej Kunz said:
“Fusion makes 1-inch swaps significantly cheaper because users won’t have to pay network fees, and an extra layer of security is added, protecting users from sandwich attacks.”
Going against the traditional centralized approach, the latest 1inch update allows investors to execute secure non-custodial swaps, which are executed in a totally permissionless and trustless manner.
According to the announcement, 1inch offers unlimited liquidity and uses a new type of decentralized order matching approach based on the Dutch auction model, as shown below.
Fusion Mode allows users to trade tokens on various DEXs without paying any network fees. The update also allows users to choose the order execution time as per their unique requirements.
Additionally, Fusion Mode provides protection against Maximum Extractable Value (MEV), which refers to the maximum value that can be extracted from block production in excess of the standard block reward and gas rates.
In addition to the update, 1inch has launched the 1inch Resolver Incentive Program, which will help resolvers get a refund on gas spent fulfilling Fusion Mode user orders through December 31, 2022.
Related: 1inch releases new tool to protect traders from ‘sandwich attacks’
Security experts believe that bridge attacks will still be a major challenge for the DeFi industry in 2023.
Speaking to Cointelegraph, Theo Gauthier, founder and CEO of Toposware, pointed out that bridges have an “intrinsic vulnerability” because they rely on the security of the chains they connect to.
In this regard, one of the main technologies available is zero-knowledge proofs (ZKP), which allow verifying and proving the accuracy of data without revealing additional information.