1 Inch Team has released the third iteration of its merger protocol, a tool that carries trading orders to all Ethereum decentralized exchanges, and most recently Binance Smart Chain.
The consolidation protocol calculates the most profitable trade for a given symbol and order size and potentially divides a large order into several parts on many decentralized exchanges. In the past, this tool was mainly useful for wealthy traders, for whom slippage was an important factor when trading decentralized financing. The system consumed more gas than using the DEX protocol directly, which meant that the product was not attractive to retailers.
V3 contains improvements that the team claims make the protocol cheaper than using Uniswap or regular 0x. In tests performed by the team, the 1-inch V3 complex was about 10% cheaper in terms of petrol than the same offers made through Uniswap, and about 5% cheaper than 0X. Compared to the 1-inch V2, petrol costs are 30% lower.
Comparison of petrol prices for different transactions with permission from The 1 Inch Team.
Anton Bukov, CTO at 1inch, told Cointelegraph that Uniswap is the cheapest protocol when it comes to gas taxes. This has led to the emergence of many copies on Ethereum and other blockchains, especially Sushi Swap. However, the commercial Uniswap router does not appear to be as efficient as it should be, and Buckoff notes:
“Our router is more powerful than their router. The same goes for SushiSwap and other card games. ”
Thus, a 1-inch router replaces Uniswap when using the same devices, which explains why an installer may be cheaper than direct use. Bukov said that the higher performance of Uniswap was the result of targeted improvements. Serge Koons, CEO of 1inch, added: “We only improve where we can, dust off, so to speak, after the other people at DeFi.” This will not be the first time an empty target against Uniswap, and recently launched a “vampire strike” for active Uniswap users. In this case, however, targeting has a more technical significance. Because the Uniswap database is so popular, it optimizes it to maximize profitability and maximize liquidity.
The new V3 has already been rolled out and replaces the previous iteration, which will still be available for use. Changing platforms will require a new symbolic allocation, which will cost petrol. However, it seems that the immigration office can pay for it quickly.