In this article, we’ll explain the advantages that you can get from integrating the 1inch Aggregation API and 1inch Limit Order API into your project.
The integration of open-source protocols by various services has been one of the backbones of the DeFi space. For instance, the 1inch Aggregation API has been already integrated by dozens of services, including MetaMask, Coinbase Wallet, Gnosis, Ledger and other top-tier crypto projects.
However, the potential of the 1inch APIs is much higher, and many more services could still benefit from integrating an API, which, in turn, would benefit the entire DeFi segment by laying foundations for sustainable and profitable long-term operations.
The 1inch APIs have substantial advantages over competitors, such as the best swap prices, access to the deepest liquidity in the market, as well as external liquidity via PMMs, limit order functionality, very short response times and reliable protection from front-running and sandwich attacks.
Let’s see what projects can use these advantages and in what ways.
Who can integrate the 1inch API?
The 1inch APIs could be integrated into a wide range of projects that need non-custodial functionality for price aggregation, token swaps or limit orders.
Сrypto wallets, portfolio management and tracking services
For projects in this category, the integration of swaps at the best prices into their interface comes as an improvement of their offering to users.
One example of a successful integration of the 1inch Aggregation API into a wallet is Trust Wallet, which recently integrated the API to power its swap functionality.
Another possible use of the 1inch Aggregation API is leverage trading, which Instadapp has successfully proven.
High-frequency algorithmic bots and arbitrageurs trading on DEXes need substantial capacities to run a high number of trades per second, and here, the fast 1inch Aggregation API comes in handy.
DEXes could profit from the 1inch Limit Order API by adding the limit order functionality, which, for instance, could enable them to implement stop loss orders.
Another category of projects that could be interested in integrating the 1inch Aggregation API are aggregator services. True, 1inch is an aggregator itself. However, most recently, so called “aggregators of aggregators” have arrived, which combine offerings from individual DEXes and DEX aggregators.
Of course, this is by no means an exhaustive list of implementation cases for 1inch APIs. There are many more possible implementations, like, for instance, Furucombo, which enables users to create customized DeFi legos and put all strategies into one transaction.
The main advantage that the 1inch APIs are offering is the best swap rates thanks to the 1inch Aggregation Protocol’s underlying Pathfinder algorithm. Pathfinder discovers the most efficient token swap paths, splitting transactions across various DEXes to offer users the best prices.
The algorithm also takes fees into account, offering the user rates that already include swap fees and gas costs.
1inch’s Aggregation and Limit Order APIs support the Ethereum, Binance Smart Chain (BSC) and Polygon blockchains, as well as L2 solutions Optimistic Ethereum and Arbitrum.
Numerous liquidity sources
The 1inch Aggregation Protocol has been known for offering access to the deepest liquidity in the DeFi space. Currently, 1inch is connected over 60+ liquidity sources on Ethereum, 30+ liquidity sources on Binance Smart Chain and 30+ liquidity sources on Polygon, Optimistic Ethereum and Arbitrum. All of this liquidity will become available to a project that integrates the 1inch APIs.
Short response time
Another advantage of 1inch APIs is a very short response time of 160 ms on average, which is one of the best offerings in the market.
Swaps via the 1inch Aggregation Protocol are protected from front-running and sandwich attacks on the Ethereum network. 1inch Flashbots offer you an extra level of protection. To learn more about how 1inch Flashbots works, check out this article.
Access to external liquidity
The 1inch Limit Order API facilitates access to external liquidity brought by private market makers (PMMs) from CEXes and other chains.
Limit order functionality
The 1inch Limit Order Protocol offers the most advanced limit order functionality on the market, thanks to features like RFQ, dynamic pricing and conditional execution. The protocol could become a basis for stop loss and trailing stop loss functionality, as well as auctions.
To learn more about limit order functionality and the 1inch Limit Order Protocol, check out this post by 1inch co-founder Anton Bukov. By the way, the 1inch Limit Order Protocol v2 was recently released, which contains several major improvements.
How to make a profit from the 1inch API?
The main earning options for those integrating the 1inch APIs are swap fees and the referral program.
A project that has integrated the 1inch Aggregation API for token swaps can charge a swap fee. One good example is MetaMask, which charges a dynamic fee on each swap via its interface. That way, MetaMask is monetizing the 1inch Aggregation API, which it has integrated.
A referral program for the 1inch Aggregation API is currently available, enabling a 1inch API integrator to collect a portion of leftovers from trades. Leftovers appear when the swap rate improves at the time of the trade, and, while the user receives exactly the amount they were originally offered, extra tokens are left. The Leftover distribution is managed by the 1inch DAO, which has decided that 80% of all leftovers is sent to the Treasury and the remaining 20% is collected by the referrer.
How to integrate the 1inch API?
The integration process for the 1inch APIs has been streamlined, and it can now be implemented with only two calls:
Get quote using
Get calldata for trade
Detailed documentation for the 1inch Aggregation Protocol and the 1inch Limit Order Protocol is available in the documentation section.
The 1inch Limited offers special API integration conditions for the enterprise sector. The team can provide consultations on the entire process and help to fine tune an API to meet your business needs. For instance, if a company doesn’t have a required rate limit but is ready to provide sufficient volumes, the Pathfinder algorithm, entry point and call data collector could be deployed in a separate environment for that specific company. If you need consulting on API integration, submit a request here.
Meanwhile, the integration of the 1inch APIs could also become the first step towards something bigger. And if your plan is broader than just integrating 1inch APIs and you are thinking about building a new product that will help grow out the 1inch Network, you can apply for a grant from the 1inch Foundation. To learn more about 1inch grants and apply, check out this page.
Stay tuned for more 1inch news and updates!