The 1inch aggregation protocol is specially developed to help individual users obtain the best price in cryptocurrency transactions. One of the most important functions is to help individual users save gas fees in transactions. how did you do that?
In the current environment, the Ethereum network is still the most popular choice in DeFi transactions. However, as the demand for transactions on the Ethereum network is getting higher and higher, Ethereum’s gas processing fees have risen to the point where people can’t bear to swallow, especially for those heavy users of Ethereum, the daily gas fee paid is obvious Affected the trading income of cryptocurrency, especially those high-frequency traders in the low liquidity fund pool.
1inch saw such a pain point and set out to deal with it. So there is the Pathfinder tool. Pathfinder was launched in November 2020. This is the first new API tool added in the 1inch v2 version. It can find the best in multiple decentralized markets in less than one second based on gas cost savings. The best trading path.
Pathfinder runs on Ethereum and Binance Smart Chain and supports Gas token Chi. Users can use this tool to save Gas fees. Then in March 2021, 1inch launched the 1inch v3 version. This version of the aggregation protocol further optimizes the support of Gas token Chi.
So what is Chi token? Chi token is an ERC20 standard token, which is used to pay gas transaction costs in 1inch dApp. Chi is a 1inch Ethereum Gas fee token based on Gastoken and optimized. Simply put, Chi is a fee token. The logic behind it is that Chi is linked to the gas price of the Ethereum network. When the gas price is low, the Chi price is also low, and vice versa. Users can cast Chi when the gas fee is low, and destroy Chi when the gas fee is high. This process can allow 1inch users to save up to 40% in gas fees, thereby optimizing transaction costs.
Just like Gas tokens, Chi is the tokenized Gas on the Ethereum network. The only difference is that Chi is used on 1inch and Curve, while Gastoken is used on the entire Ethereum network. The name Chi (qi) was inspired by Bruce Lee’s “one inch punch” in martial arts, and the powerful force in martial arts is called “qi”.
In the 1inch v3 iterative version of the aggregation protocol, benefiting from code optimization, the use of Uniswap V2 and its forks, such as SushiSwap, Lua Swap, etc. for transactions, can also save Gas transaction fees. For example, using the 1inch aggregation protocol to exchange ETH to DAI according to the path of ETH -> USDC -> DAI, it is 10% cheaper than using UniSwap to exchange the same path, and the same path is 3.5% cheaper than the 0x transaction.