In a statement released today, 1inch, a platform that allows trading tokens on the Ethereum blockchain, announced that it has closed the first round of investments, worth $2.8 million.
The fundraising was led by Binance Labs and major venture capital funds.
This platform is an aggregator of decentralized exchanges (DEXs) that allows a smart contract to split transactions between different DEXs such as Uniswap, Kyber Network, Airswap, Oasis, Bancor, Balancer, Curve and others.
It is worth noting that this system has recently exceeded one billion dollars in volume and is therefore widely used by users, which has encouraged investors to focus on its growth.
The CEO of Binance, Changpeng Zhao, said:
“DEX aggregation is a critical building block that co-enabled the most recent DeFi boom. It allows executing large order sizes at low slippage rates. 1inch has become the de facto interface for trade execution in DeFi, with aggregate volumes surpassing $1 billion. It is of great pleasure to support the 1inch team in their relentless quest to drive user adoption in DeFi.”
The investment round and other 1inch news
1inch is located in one of the macro areas of decentralized finance (DeFi), namely decentralized exchanges (DEXs), which allow not only to exchange tokens but also to list users’ tokens in an almost independent way.
Another new feature that was launched today is that of Mooniswap, which is an AMM (Automated Market Maker), a system that greatly limits the effect of impermanent loss, a system similar to those found on the new Bancor v2 protocol launched at the end of July.
The novelty did not go unnoticed, and was also highlighted by Vitalik Buterin:
New automated market maker based on anti-front-running ideas from https://t.co/EAeKOHubpF https://t.co/0IoTTx9cnz
— vitalik.eth (@VitalikButerin) August 11, 2020
Thanks to these investments the team will be able to expand and improve the platform, changing its algorithm to make it better, allowing to find the best deals in less than 1 second, as explained by the CEO of 1inch, Sergej Kunz:
“Throughout a year our team has grown from just two people up to sixteen – mostly award winning developers from various Ethereum hackathons. At 1inch, we aim to unite traders and liquidity providers, facilitating transactions that are profitable for both sides. The funds raised in the first investment round will be used to further grow the team, to develop our algorithm together with new innovative products and to run marketing activities. We believe that the gold rush in DeFi is in full swing and 1inch has full potential to become the first DeFi unicorn company.”
Decentralized finance is not only very profitable for those who use it, but it is also a sector where all the major players in the crypto world are investing.