Today, the 1inch decentralized exchange and liquidity aggregator announces the launch of the 1inch limit order protocol. The new feature offers 5 different security audits and will allow users to buy or sell assets at specific price targets on Ethereum, BSC and Polygon. The new functionality will also be able to interact with smart contract logic and execute commands based on Oracle data.
Limit orders were previously available to the DeFi ecosystem through a variety of protocols, including Gelato and 0x, the latter used by 1 inch. However, the team claims that this new protocol will be more gas-efficient and more secure because it does not require administrator keys and that the protocol will add additional value to the ecosystem through composability with other protocols, such as as Uniswap v3.
While the protocol immediately adds to the functionality of the 1-inch exchange, there are multiple possible use cases that external teams have been asked to explore.
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“In addition to the protocol, complex and personalized market making tools could be built,” the announcement said. “For example, such a tool would facilitate gains on a pair of assets indexed to the same currency, such as USDC and DAI, both of which are indexed to the US dollar.”
In addition to a clear application in trading or DEX environments, 1inch co-founder Sergej Kunz highlighted a possible loan use case.
“Loan protocol liquidations can be implemented using our new protocol. When a position is ready to be liquidated, a single limit order can be placed by the smart contract of the loan protocol to offer arbitrageurs to exchange the collateral token for the debt token via a unified and very efficient interface / protocol. “, did he declare.
The Limit Order Protocol isn’t the only new version of 1inch. Yesterday, Curve announced the launch of a new algorithm that allows the protocol to create pools for volatile assets. 1inch was recognized as an early partner of the new feature, with 1inch’s cash aggregation having access to the Curve TriCrypto pool at launch.