1inch Added P2P Features
Continuing to expand the scope of DeFi services offered to users, the 1inch Network is introducing a P2P feature, which facilitates secure crypto swaps between individual users.
Demand for this kind of service has been there for quite a while, but very few platforms currently offer it to users. Now, 1inch has stepped in to fill the gap, implementing a P2P order feature.
It works like this: A user finds a counterparty for swapping a certain amount of tokens. The counterparty provides them with a crypto address, which the user enters in the P2P tab of the 1inch dApp.
The swap could be executed at any rate the parties agreed upon or at the current market rate, supplied by 1inch’s spot price aggregator. There is also an opportunity to select a specific percentage above or below the current market rate. Once a P2P order has been created, the user can send it as a simple URL to the counterparty by email or via any messenger. The URL contains the P2P order signed by the sender. The counterparty fills the order and pays the gas fee.
The P2P functionality is built on top of the 1inch Limit Order Protocol and is available on all networks, supported by 1inch: Ethereum, BNB Chain, Polygon, Avalanche, Optimistic Ethereum, Arbitrum and Gnosis Chain.
The main advantage of P2P orders is that P2P swaps are totally trustless as their execution is guaranteed by a smart contract. Another advantage is complete decentralization, as data exchange is implemented by sharing URLs, bypassing 1inch’s backend.
A P2P order can come in handy in situations when liquidity for a certain token is not sufficient for a large OTC deal or, due to low liquidity, swaps on the market would incur significant slippage. The same applies to tokens that are not yet traded on the market, such as coins in the presale stage.
ABOUT 1inch Network
The 1inch Network unites decentralized protocols whose synergy enables the most lucrative, fastest and protected operations in the DeFi space.
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