Decentralized exchange (DEX) aggregator 1inch Network has officially launched its services on Binance Smart Chain (BSC), offering users a cost-effective alternative to Ethereum-based trading. This strategic move addresses rising gas fees on Ethereum while tapping into BSC’s growing DeFi ecosystem.
Why 1inch Chose Binance Smart Chain
1inch Foundation has deployed its flagship DEX aggregation protocol and liquidity mining platform to Binance Smart Chain. Originally launched on Ethereum in December 2020, 1inch gained popularity by sourcing liquidity from major DEXes like:
- Uniswap
- Balancer
- Sushiswap
- Mooniswap
👉 Discover how DEX aggregators optimize trading rates
With Ethereum network fees reaching prohibitive levels for retail traders, BSC’s low-cost environment (transactions often under $1) presents an attractive solution. Sergey Kunz, 1inch co-founder, stated: “We see significant potential for 1inch Liquidity Protocol to dominate Binance Smart Chain’s liquidity landscape.”
Binance Smart Chain’s Thriving DEX Ecosystem
BSC has emerged as a formidable challenger to Ethereum’s DeFi dominance:
| Rank | DEX Platform | Blockchain | 24h Volume (USD) |
|---|---|---|---|
| 1 | Mdex | BSC | $2.1B |
| 2 | Uniswap (V2 + V3) | Ethereum | $1.8B |
| 3 | PancakeSwap | BSC | $1.5B |
Data sourced from CoinGecko (February 2021)
Notable BSC-based exchanges include:
– PancakeSwap (volume leader)
– BurgerSwap
– Venus
– JulSwap
Liquidity Mining Incentives
To bootstrap adoption, 1inch implemented two key initiatives:
- Cross-Chain Liquidity: $10M worth of 1INCH tokens deposited into Binance Bridge
- Yield Farming Rewards: 150,000 1INCH (~$650,000) allocated to BNB-1INCH pool providers over 4 weeks
The market responded positively, with 1INCH token price surging 10% within an hour of the announcement.
👉 Learn about yield farming strategies on BSC
Frequently Asked Questions
Why did 1inch expand to Binance Smart Chain?
1inch migrated to BSC primarily to offer affordable trading alternatives as Ethereum gas fees made small transactions economically unviable. BSC’s growing ecosystem and low fees provide better accessibility.
How does 1inch compare to PancakeSwap?
While PancakeSwap is a standalone DEX, 1inch aggregates liquidity across multiple platforms (including PancakeSwap) to ensure users get optimal swap rates. 1inch also offers advanced routing algorithms.
What benefits do liquidity providers receive?
Providers to the BNB-1INCH pool earn:
– Trading fees (0.01% to liquidity providers)
– Additional 1INCH token rewards
– Potential price appreciation of both assets
Is Binance Smart Chain more centralized than Ethereum?
Yes, BSC uses a Proof-of-Staked-Authority (PoSA) consensus with 21 validators compared to Ethereum’s thousands of nodes. This allows faster/cheaper transactions but with less decentralization.
Can I still use 1inch on Ethereum?
Absolutely. The BSC integration is an expansion, not replacement. Users can choose between Ethereum and BSC based on their needs for cost, speed, or token availability.
How secure is 1inch’s smart contract?
1inch contracts have undergone multiple audits by Quantstamp and PeckShield. The platform has processed billions in volume without major security incidents since launch.