1INCH

1INCH is the native token of the 1inch Network, a decentralized exchange aggregator that searches across multiple liquidity sources to find the most efficient trading routes for users swapping one cryptocurrency for another. The project aims to address the problem of fragmented liquidity in decentralized finance, where trading on a single exchange often means worse prices and higher costs compared to splitting a trade across several venues simultaneously. It is designed for anyone who wants to exchange digital assets without relying on a centralized intermediary.

1inch routes trades through its Pathfinder algorithm, which splits and routes orders across connected decentralized exchanges and automated market makers on networks including Ethereum, BNB Chain, Avalanche, and Arbitrum to minimize slippage and fees for the user. The 1INCH token is used within the protocol's governance and, under certain configurations, to capture a share of fees generated by the swap infrastructure. The protocol does not operate its own blockchain and has no block time or consensus algorithm of its own, relying instead on the underlying settlement layers of the chains it is deployed on.

The protocol generated 52,833 USD in total fees over the trailing 30 days, of which 9,591.97 USD was retained as protocol revenue, implying a take rate of approximately 18.16 percent over that same period. The remaining fees, amounting to 43,241.03 USD in the trailing 30 days, went to liquidity providers on the underlying venues, referred to here as supply-side revenue. Annualizing from the trailing 30-day figures produces estimated fees of 642,801.50 USD and protocol revenue of 116,702.30 USD, yielding a fully diluted valuation-to-revenue ratio of 1,160.65 and a market-cap-to-revenue ratio of 1,087.59. The 30-day DEX volume routed through the aggregator was 279,684,123 USD, against a total value locked of 3,211,907.80 USD, giving a sense of how much volume the protocol facilitates relative to the assets it directly holds.