134 Interactions, 2 today
The liquidity aggregator has recently expanded its capability with the Limit Order Protocol, a new technology that may have applications outside of DEXes.
The 1inch Limit Order Protocol was launched today by the decentralised exchange and liquidity aggregator 1inch. The new service includes five distinct security audits and will allow users to purchase or sell assets on Ethereum, BSC, and Polygon at precise price objectives. The new functionality will also be capable of interacting with smart contract logic and executing orders based on Oracle data.
Limit orders were formerly accessible to the DeFi ecosystem via a number of protocols, including Gelato and 0x, the latter of which 1inch made use of. However, the team says that because it does not require admin keys, this new protocol will be more gas-efficient and safe, and that it will provide more value to the ecosystem through composability with existing protocols such as Uniswap v3.
While the Protocol instantly improves the functioning of the 1inch exchange, external teams have been encouraged to investigate a variety of potential use cases.
According to the statement, “complex, customised market making tools could be built on top of the protocol.” “For example, such a tool would make it easier to earn on a pair of assets pegged to the same currency, such as USDC and DAI, which are both pegged to the US dollar.”
Aside from obvious applications in trading or DEX contexts, 1inch co-founder Sergej Kunz hinted to a potential lending use case.
“Using our new protocol, lending protocol liquidations can be implemented. When a position is ready to be liquidated, the lending protocol smart contract may simply set a limit order to allow arbitragers to trade the collateral token for the debt token via an uniform and extremely efficient interface / protocol,” he explained.
The Limit Order Protocol isn’t 1inch’s only new product. Curve announced the debut of a new algorithm yesterday that allows the protocol to build pools for risky assets. 1inch was identified as an early partner of the new feature, with its liquidity aggregation having access to the Curve TriCrypto pool from launch.