Proposal: Add support for 1INCH Token

I did not know that, thanks for sharing.
Then 1INCH itself would be a great start

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I think this gets us in the proper path

x1inch seems like a great idea

Can’t wait let’s move this forward asap !

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I’d also love to see x1inch(a/b) usable as collateral on Aave. There’s a lot of liquidity in those contracts that could use freeing up.

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it would be cool to add the support to a wrapped st1inch so stakers like me could benefit of this too

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Massively in favour of this proposal after seeing the value deposited from xSushi .

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Let’s make this happen @k06a :+1:

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Just wanted to check is this proposal moving ?

It’s been over a month and I haven’t heard anything else following the proposal.

I have a bunch of 1inch and low health factor so the sooner the better pleeease !!!

LFG !!!

Hi @k06a

As mentioned by @TheoRochaix could you please follow the ARC Asset Onboarding template to facilitate the next steps?

It’s available on Template ARC Asset Onboarding - Governance

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@Alex_BertoG @TheoRochaix thanks, will do!

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Although 1INCH is a young project with only 83 days of maturity, it does look like it has a score of B- across the board for Smart Contract Risk, Counterparty Risk and Market Risk considering that it is a DEX and the success it had that lead to > 500k transactions, 49k holders, market cap of > 583M, average volume (1M) of > 343M and a normalized volatility of 0.022 (if my calculations are right).
I do think 1INCH it would be a great addition to the protocol.

This is a continuation of proposal for adding borrow/lend support for the 1inch token (1INCH) on Aave

References

Link to:

Paragraph Summary

1inch runs powerful liquidity and aggregation protocols.

1inch DEX Aggregation Protocol sources liquidity from various exchanges and is capable of splitting a single trade transaction across multiple DEXs. Smart contract technology enables users to optimize and customize their trades.

1inch Liquidity Protocol enables decentralized token swaps, also offering rewards for liquidity providers and stakers and governance opportunities under the DAO model.

Motivation

1inch protocol smart contracts are consistently in top 5 on ethereum blockchain in terms of gas usage and approximately 10% of the overall DeFi trading volume is routed through 1inch. The synergy between our projects is tremendous and would lead to enhanced activity on both platforms.

Specifications

  1. What is the link between the author of the AIP and the Asset?

Initial contributor into the distributed 1inch Network

  1. Provide a brief high-level overview of the project and the token

1inch is a decentralized exchange and liquidity aggregator, connecting several DEXes into one platform to allow its users to find the most efficient swapping routes across all platforms. 1inch Network is launching with “instant governance”, a new feature that allows the community to vote for specific protocol settings under the decentralized autonomous organization (DAO) model, in a transparent, user-friendly and efficient way.

Instant governance is a new kind of governance where the community can participate, benefit and vote for specific protocol settings without any barrier to entry.

  1. Explain positioning of the token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?

1INCH, the native token of our platform, is already a well-traded and highly liquid asset with an average daily trading volume in excess of $100M and tradable on most major exchanges, including Binance, Huobi, OKEX, Poloniex and Coinomi.

The independent forming board of the 1inch Foundation has released and issued 1INCH tokens and 1INCH tokens are under the control of 1inch Foundation one of the objects of which is to develop and incentivize the growth of a 1inch network protocols. The 1inch will post soon on the complete board of the 1inch Foundation, its status, programme, grants etc, please stay tuned.

Our community consists of experienced DeFi traders and amasses over 90,000 active wallets that use our smart contracts. We believe that the addition of our token to Aave will increase the activity on the platform and provide a vast number of opportunities to the communities of both products. A natural next step is to create a lending market, and we can’t think of a better place to do that than the Aave community. Being able to borrow and lend 1INCH tokens would facilitate:

  • users’ increased exposure to synth assets and their market presence.

  • create interest bearing a 1INCH, which can be both staked in other protocols and loaned out to DAOs with unsecured loans via Credit Delegation.

  • create leveraged 1INCH trades.

  1. Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?

Launched in May 2019 on the Ethereum New York hackathon by Sergej Kunz and Anton Bukov, 1inch surpassed $20B in overall volume (live stats from Dune Analytics) in less than two years. 1inch project had two successful private investment rounds that have been led by Binance Labs and Pantera Capital. In November 2020, 1inch was updated to version 2 (intro video) which major highlights are Pathfinder, an API that contains a new discovery and routing algorithm, and an intuitive, user-friendly UI. In December 2020, the 1inch team released its upgraded Liquidity Protocol – an AMM (automated market maker) with instant governance where LP (liquidity provider) earnings are dramatically increased by slowing down price changes to prevent arbitrage traders from earning up to 100% of the swap slippages. 1inch has already integrated support for 40+ top DEXes including Uniswap v1 and v2, Balancer, Curve, Kyber, SushiSwap, DODO, Oasis, and many more. In a move towards interoperability, in February 2021, 1inch Network expanded to Binance Smart Chain (BSC) and 1INCH governance token was deployed on BSC, offering users a chance to easily switch between Ethereum and BSC. All features of the 1inch Liquidity Protocol, the 1inch Aggregation Protocol and all 1INCH staking features became available to BSC users.

  1. How is the asset currently used?

Users who stake their 1INCH tokens, as well as liquidity providers in the 1inch Liquidity Protocol can vote directly on major protocol parameters: the price impact fee, the swap fee, the governance reward, the referral reward, and the decay period.

All voting will be done with the 1INCH token, which has no financial value. The community will determine protocol fees and the distribution of rewards.

There will be two types of governance: pool governance and factory governance.

Pool governance will include the configuration of parameters that are specific to each pool, such as the swap fee, the price impact fee and the decay period.

Factory governance is responsible for parameters shared by all pools, such as the default swap fee, the default price impact fee, the default decay period, the referral reward and the governance reward.

Swap fee

The swap fee is a fixed fee charged on each swap on the protocol.

Price impact fee

The price impact fee is a dynamic swapping fee charged on each swap and based on the price impact incurred. In the first version of Mooniswap, the system adds a decay period (time delay) when adjusting asset prices, which makes arbitrage more competitive and adds protection from front-running attacks. Over the past four months, 1inch validated its thesis that this decreases arbitrageurs’ profits and increases liquidity providers’ profits. The price impact fee adds an extra dimension to our AMM design.

Based on 1inch team’s simulations, the price impact fee could increase liquidity providers’ revenues by several times (in comparison to existing solutions). This is possible even on a market with fairly distributed volumes.

Decay period

The decay period is a unique feature that protects traders from front-running attacks and prevents arbitrage traders from easily extracting value from pools. Longer decay periods lead to a wider price spread in the pool after trades. 1INCH stakers can set a decay period between 1 minute and 5 minutes.

Governance reward

The governance reward is introduced to compensate stakers for their participation in the 1inch Liquidity Protocol governance. The reward is sourced from the swap fee and the price impact fee. The DAO governs the size of both of these fees.

Referral reward

The reward is a part of the swap fee and the price impact fee which is dedicated to referrers (dApps and wallets that attract users and trading volume). Referrers can subsequently claim their share of 1INCH tokens from all pools in one gas-efficient claim transaction.

  1. Emission schedule

The circulating supply on 1INCH as of its release day on Dec. 25, 2020 is 6 percent of the total issuance, as well as .5 percent for the first two weeks of the liquidity mining program. The current total supply of 1INCH is 1.5 billion tokens.

Of the total token supply, 30 percent was allocated to community incentives, and they will be passed out over the next four years in order to create an incentive for community members to be involved in protocol governance.

Over a four-year period as well, 14.5 percent of the total supply will make up the protocol growth and development fund, used to issue grants, bring on developers and repay any users due to unforeseen circumstances.

  1. Token permissions and upgradability

1INCH is an ERC-20 utility & governance token with a lot of on-chain utility use cases. All upgrades / changes in the protocol are voted on by 1inch tokenholders via the instant governance. Votes are aggregated by the smart contracts whereby it will then implement the proposed changes. We are moving closer to a full DAO model.

  1. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)

The exchanges where 1INCH is traded include Binance, OKEx, Gate io, Huobi Global, DigiFinex, MXC, Uniswap (V2), KuCoin, Bilaxy, FTX, HitBTC, BitForex and more

  1. Social channels data (Size of communities, activity on Github)

1INCH has a flourishing community of over 200,000+ members across multiple online channels, as well as more than 170,000+ active wallets and 49,000+ token holders.

Community links

Twitter

https://twitter.com/1inchExchange

Governance forum

Discord

Medium

https://1inch-exchange.medium.com/

YouTube

Telegram

Telegram: Contact @OneInchExchange (ENG)

Telegram: Contact @OneInchExchangeRU (RUS)

GitHub

Reddit

And 10. Contracts date of deployments, number of transactions, number of holders for tokens

Contract was deployed on 24th of December 2020. Currently, there are over 49,000 token holders. Majority of them have used our token on-chain through participating in different governance mechanics.

Our token address is 0x111111111117dc0aa78b770fa6a738034120c302

Over 545,601 on-chain transfers.

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Awesome!
I’m an 1inch #1fan and ofc hodl some tokens, so totally agreed.

1inch is available for borrowing and lending at yield.credit. i have been using 1inch as collateral to pull usdt loans.

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This week:

  • $1inch Coinbase Pro listing
  • Surpassed $30 Billion total trading volume
  • Overall network & social engagement up
  • Token up 30%
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Few days ago 1inch Exchange was rebranded to 1inch Network: https://link.medium.com/DnSUWrAElfb

New website: 1inch.io

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DELEGATE

image

It’s Finally Here !!

:unicorn: The 1inch signal enchants the grey sky of Gotham City !

Currently, Our Hero stands before the AAVE’s Iron Gates waiting for your support

It’s Now or Never …

:link: Proposal link (Proposal: Add support for 1INCH Token) :arrow_left:

:rotating_light: To list 1INCH on AAVE V2, your help in gathering 0.5% of the total supply in AAVE as proposition power is needed :rotating_light:

:warning: This is the call to both AAVE and stkAAVE holders, to concentrate their voting power right on this wallet :arrow_lower_left:

0xE353233f078D1f4b9f5e467Aa5b46f5f931E2A0c

:link: Pull request (Add 1INCH support by krboktv · Pull Request #110 · aave/protocol-v2 · GitHub)

:link: Notion (Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.)

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Thanks for making this proposal on risk parameters!

I think 1inch Protocol and token generally have healthy fundamentals, as well as good liquidity and trading volume metrics. But I have a concern about the concentration of tokens and potential for malicious distribution.

Currently around 88% of token supply is held in the 1inch foundation multisig, requiring 2/3 signers. This amounts to around $7 billion. If this was compromised, an attacker would be able to borrow up to ~$4.5 billion in assets from the protocol, and the debt would likely result in a near total loss to Aave.

I’d feel more secure accepting 1INCH token as collateral if the treasury was transitioned to a more reliable mechanism - potentially more signers on the multisig would help, or transferring the bulk of tokens to a multi-day timelock mechanism to give advance notice of distributions. In the long run transitioning to full token holder control of treasury assets is likely the most secure option.

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1inch integrated Polygon this week :fire:

and this :point_down:

https://twitter.com/Anchorage?s=20
Time to add $1inch - as well as :point_right: $BNT (Bancor) I might add

I support this initiative

It’s been ~5 month since the proposal was first published and I do hope 1INCH will be accepted as collateral on Aave ASAP.