The decentralized exchange aggregator sourcing liquidity from multiple platforms 1inch has raised nearly $3 million in a funding round led by Binance Labs. Other prominent participants in the series include Galaxy Digital, Greenfield One, Libertus Capital, Dragonfly Capital, FTX, LAUNCHub Ventures, and Divergence Ventures.
According to a press release shared with CryptoPotato, the successful completion of the funding round came shortly after the decentralized exchange aggregator reached a significant milestone of over $1 billion in overall volume.
Launched in 2019, 1inch employs smart contract technology to split a single trade transaction across multiple decentralized exchanges (DEX). Thus, it enables users to optimize and customize each trade. Some of the popular platforms currently utilizing 1inch include Uniswap, Kyber Network, Airswap, Oasis, Bancor, Balancer, Curve, and more.
Following the financing round, the company aims to double-down on its recent product expansion and the growth of its team.
“The funds raised in the first investment round will be used to grow the team further, to develop our algorithm together with new innovative products, and to run marketing activities. We believe that the gold rush in DeFi is in full swing and 1inch has full potential to become the first DeFi unicorn company.” – commented 1inch co-founder and CEO Sergej Kunz.
The company recently released a new sophisticated search algorithm for swapping routes dubbed Pathfinder. After implementing it, 1inch experienced improved speed and efficiency to its aggregator, the statement asserted.
Additionally, the company’s automated market maker (AMM) Mooniswap “resolved the major issues of impairment loss by reducing arbitrageurs’ earnings while increasing liquidity providers’ earnings.”
One of the upcoming products scheduled for an August launch is an algorithm that utilizes 1inch API to “respond in less than a second to find the best trading paths and is completely free for B2B integrations.”
Binance Strategy Officer Gin Chao and CEO Changpeng Zhao (CZ) also spoke on the funding round and Binance’s involvement with 1inch. According to Chao, both companies began working together shortly after 1inch launched last year.
CZ noted that his firm has enjoyed supporting 1nch “in their relentless quest to drive user adoption in DeFi” and highlighted its value in the growing DeFi field:
“DEX aggregation is a critical building block that co-enabled the most recent DeFi boom. It allows executing large order sizes at low slippage rates. 1inch has become the de facto interface for trade execution in DeFi, with aggregate volumes surpassing $1 billion.”
This article was first published on: Aug 11, 2020