1inch.exchange, a decentralized exchange aggregator that finds best prices by splitting up token trades across multiple DEXes, is optimizing how it calculates the U.S. dollar value of trades courtesy of Chainlink.
“[1inch.exchange], a DEX aggregator for splitting up trades to minimize slippage, is integrating the on-chain price from all of Chainlink’s ETH-based Price Reference Contracts into their UI. This will serve as the basis for calculating the USD value of user balances & token amounts.”
That makes 1inch.exchange the latest, but undoubtedly not the last, decentralized finance (DeFi) project to embrace the oracle networks behind these on-chain price reference feeds, which Chainlink first unveiled back in January.
Devised as a community resource for Ethereum dApps to easily access price data, these oracle networks have already been integrated in varying degrees by several notable DeFi projects, namely Aave, bZx, Nexus Mutual, Synthetix, and TokenSets.
One Transaction, Multiple Trades
Not only can 1inch.exchange source liquidity from multiple exchanges, but it can also split a single trade transaction across multiple exchanges, a dynamic powered by smart contract tech that’s aimed at helping users optimize and customize their trades.
To data, 1inch.exchange has integrated support for top DEXes like Uniswap, Kyber Network, Airswap, Oasis, and Bancor, and the platform’s builders have plans for more future integrations on their roadmap.
We can also generally expect to see 1inch.exchange’s single-transaction functionalities integrated with more DeFi “money lego” projects going forward as a result of the open, permissionless nature of the ecosystem.
One such instance is ileverage.finance, which was revealed last week by iearn.finance creator Andre Conje. The project connects the on-chain dApps of MakerDAO, 1inch.exchange, and Curve Finance to help users take out leveraged short positions against the Dai stablecoin, which has been trading above $1 recently due to the breakout of acute Dai liquidity crunch this month.
Currently between ~7% and ~10% profit per short position.
— Andre Cronje (@AndreCronjeTech) March 18, 2020
Yet this is just one early example — more will surely come, particularly if 1inch.exchange’s pricing infrastructure continues to improve, a la their new collaboration with Chainlink.
Chainlink Keeps the Pace Up
Like last year, the Chainlink team has seen their pace of activity and ecosystem collaborations remain on the up and up in 2020, too.
Just this month, on-chain synthetic assets project Synthetix and decentralized lending and margin trading project bZx announced plans to integrate with Chainlink’s decentralized price feeds.
bZx’s team revealed the news two weeks ago as part of their response to two separate “flash loan” attacks that saw a bad faith actor or actors manipulate the platform and make off with a small trove of ETH. Chainlink’s feeds will thus help the platform to avoid similar egregious manipulations in the future, as bZx’s co-founder Kyle Kistner explained:
“If there is an excessive deviation between the price quoted for a DEX trade and the Chainlink reference price, the transaction reverts. We believe that Chainlink represents one of the best decentralized oracle solutions on the market. Each critical price feed is secured by numerous independent nodes, which collectively source data from over 7 independent data aggregators.”
This month, Ethereum development studio ConsenSys and “Big Four” firm EY rolled out Baseline Protocol, which is aimed at making traditional business activities easy and affordable on Ethereum and brings together mainstream giants like Microsoft and AMD and DeFi mainstays like MakerDAO and Chainlink as collaborators.
Back in January, Chainlink also notably came aboard the Enterprise Ethereum Alliance’s EMINENT initiative, a working group task force aimed at identifying and outlining corporate record keeping practices for the Ethereum blockchain.