1inch Network, a protocol that connects decentralized projects, has released a spot price aggregator to extract data for assets traded on blockchain-based DEXs. The application calculates a liquidity-weighted average of token spot prices. 1inch advised utilizing it off-chain to avoid difficulties inside transactions.
Latest Instrument from 1inch
According to a recent paper, 1inch‘s spot pricing aggregator attempts to handle information-related duties. The depiction of asset prices retrieved from the blockchain in the interfaces of websites and applications is one example.
The tool is made up of smart contracts that communicate with several decentralized exchanges in order to obtain token liquidity-weighted spot prices. Wrapped assets such as wETH, cDAI, aDAI, and others are also supported by the instrument.
In the absence of direct liquidity between two assets, the spot price aggregator computes rates for currencies that employ a connector token.
Many DEXs on Ethereum, Binance Smart Chain, Polygon, Avalanche, Optimistic Ethereum, Arbitrum, and Gnosis Chain are supported. While other comparable systems may have a latency of up to several minutes, the company claims that 1inch’s gadget shows a token’s price instantaneously.
The technology is already being used by the 1inch dApp interface and the Pathfinder algorithm. The spot price aggregator may technically be implemented into any site where a token price is presented and has to be translated into US dollars or other fiat money.
It provides a plethora of potential use cases for investors to see the value of their tokens. If traders wish to perform more complicated operations, they should utilize the 1inch Aggregation Protocol API, according to the experts.
Previous Investment Alternative from 1Inch
To encourage liquidity providers, the protocol developed an investing platform called 1inch Earn earlier this month. When compared to Automated Market Maker (AMM) pools, the feature seeks to enable more effective use of money. Because of its incorporation in the 1inch Pathfinder algorithm, the team claims that 1inch Earn delivers “deep liquidity at every time.”
Since September 2021, the instrument’s idea has been in use in the 1inch Network Treasury under the name Trading Strategies.
The protocol’s creators expressed optimism that 1inch Earn may increase network decentralization and governance:
“The launch of 1inch Earn is set to be a major step towards improving the sustainability of the entire network and stepping up its decentralization and community-led governance, while also working as a lucrative earning tool for users.”