1inch Fusion is a next-generation trading engine introduced by 1inch, designed to improve the DeFi user experience by offering efficient and secure asset swaps. Below are its core features and mechanics:
Core Features and Mechanics
Gas-Free Transactions:
Users don't need to hold native tokens (like ETH, BNB, or MATIC) to cover gas fees. Instead, gas costs are borne by resolvers (market makers).
Protection Against MEV Attacks:
The built-in mechanism prevents front-running and other manipulative exploits, ensuring transaction security.
Dutch Auction Model:
When users place an order (becoming "makers"), resolvers compete to execute the order. The price starts high and decreases until it meets the user's specified slippage tolerance, or the order expires.
Support for Failed Transactions:
If no resolver fulfills the order within the auction period, the swap expires but can be resubmitted without additional costs.
Benefits
For Users:
Gas-free swaps, protection from failed transactions, price stability, and fast execution.
For Resolvers:
Earn rewards for staking, transaction fees, and governance power within the 1inch DAO.
1inch Fusion enables trustless, decentralized asset exchanges while offering a seamless and secure user experience. It eliminates the need for intermediaries and introduces a competitive pricing model for optimal execution.