1 Inch Network, a DEX aggregation platform, has allocated 10 million INCH tokens for its delegation incentive program, a press release on January 24 said. shows. The goal is to encourage more 1INCH stickers to hand over their unicorn power to solvers.
Encourage solvers to hand out 1-inch stickers.
1 Inch Network wants to increase the number of solvers in its platform. Accordingly, it launched a 1-inch resolver incentive program in December 2022. The purpose of the program was to compensate solvers for the cost of gas when they fill customer orders.
As part of this arrangement, the aggregator encourages its users to stake 1INCH, their local governance token. Any user who stakes governance tokens earns unicorn power in place of delegation rewards.
Unicorn power can either be delegated to solvers or used when voting on important network decisions. The aggregator has stated that the number of Unicorn Power received is directly dependent on the lock-up period. Stackers who lock their assets longer will earn more Unicorn Power.
Following this announcement, 1inch Network will now distribute 250,000 1INCH solvers weekly. The program will run until all 10 million 1INCH have been distributed. Funds from the foundation, in turn, will be used to reward 1INCH stickers who choose to surrender their unicorn power. However, the 1inch Foundation has stated that the number of 1INCH received will vary between solvers depending on their network share.
The program is after the launch of Fusion.
In late December 2022, the 1-inch network launched Fusion Mode. With Fusion, users can reverse transactions without paying network fees.
Depending on the underlying platform, network fees can vary substantially, from near zero, cents to double digits, in USD terms, in some blockchains. Ethereum. Gas fees increase when the Ethereum network is congested. This, then, can drive up the cost of swapping transactions on highly decentralized exchanges like Uniswap, a platform whose price feeds are aggregated by the 1 Inch network.
In fusion mode, solvers play an important role in enabling users to exchange without paying transaction fees. In this setup, solvers fill pending orders. These solvers are professional market makers who will pay the basic gas fee on behalf of the consumer. As a result of their participation, they benefit from arbitrage trade.
Fusion had begun. described A huge step forward for the entire DeFi space from 1 Inch Network co-founder Serge Kunz. He added that the exchange on the platform using Fusion will be much more cost effective and secure.
“This is a huge step forward for the entire DeFi space. Fusion makes 1-inch transitions dramatically more cost-effective, as users won’t need to pay network fees, plus, a security An additional layer is added, protecting users from sandwich attacks.”
1INCH is trading at $0.514 as of writing on January 25th.
Feature image from Canva, chart from TradingView
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