Cryptocurrency News

1 Inch issues composable limit order protocol

Today, decentralized exchange and liquidity aggregator 1 Inch announced the launch of the 1 Inch Limit Order Protocol. The new feature boasts of 5 different security audits, and enables users to buy or sell assets at specific price targets on Ethereum, BSC and Polygon. The new feature will be able to interact with smart contract logic, and oracle will be able to execute orders based on the data.

limit orders previously available to the DeFi ecosystem through various protocols including Gelato and 0x, the latter of which 1 inch was used. However, the team claims that this new protocol will be more gas-efficient and secure as it does not require administrator keys, and this protocol is similar to other protocols such as Uniswap v3.

While the protocol immediately adds to the functionality of 1 Inch Exchange, there are a number of potential use cases that outside teams have been invited to explore.

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“On top of the protocol, complex, customized market making tools can be built,” reads the announcement. “For example, an instrument like that would facilitate earnings on a pair of assets pegged to the same currency, such as USDC and DAI, both of which are pegged to the US dollar.”

In addition to the obvious application in a trading or DEX environment, 1Inch co-founder Serges Kunz pointed to a potential lending use case.