1inch Network

DeFi driving zkSync growth as 1inch deploys on Ethereum layer-2 scaling platform

1inch Network is the latest decentralized Finance protocol to deploy on Ethereum layer-2 scaling platform zkSync Era.

Decentralized finance protocol 1inch has deployed its aggregation and limit order protocols on Ethereum layer-2 scaling solution zkSync Era to tap into faster and cheaper transactions.

1inch Network is the latest of a host of Ethereum-based platforms and services deploying on the zero-knowledge proof (zk-proof) based scaling platform. Uniswap, SushiSwap, Maker and Curve Finance are also preparing to launch on the zk-proof roll-up zkSync Era.

1inch Network co-founder Sergej Kunz highlighted the promise of the layer-2 solution as his platform joins a handful of first-movers to integrate with the zk-proof powered protocol:

“As zkSync Era gains steam, 1inch users will benefit from faster and cheaper transactions.”

A statement from Matter Labs CEO Alex Gluchowski, who heads up the zkSync development firm, notes that DeFi protocols have been a major factor in the uptake of zkSync era:

“DeFi has been a driving force behind zkSync Era’s explosive growth that has seen over $200 million in TVL driven to the protocol in just three short weeks, and we expect the deployment of 1inch to contribute to even greater adoption and usage of zkSync Era.”

Gluchowski said that 1inch Network’s position as the largest decentralized exchange aggregator by on-chain volume would provide deeper liquidity to zkSync Era. The deployment is also touted to offer faster trades, better rates and lower transaction slippage.

zkSync is among a number of layer-2 solutions that have pioneered the use of zk-rollups to increase Ethereum’s throughput and scalability. The technology enables layer-2 protocols to move computation and blockchain state storage offchain, allowing these platforms to process thousands of transactions before providing summary data proofs to Ethereum’s mainnet.

Matter Labs secured $200 million during a series-c investment round in November 2022, taking its total fundraising to over $450 million to continue the development of its Ethereum scaling platform.

Other major Ethereum development firms, including Polygon and ConsenSys, have also developed their own zk-proof powered scaling protocols. ConsenSys released its zkEVM rollup to its public testnet on March 28.

Meanwhile, Polygon co-founder Sandeep Nailwal described zk-rollups as “the holy grail of Ethereum scaling” upon the release of its open-source zkEVM Ethereum scaling technology to the mainnet on March 27.

Magazine: ZK-rollups are ‘the endgame’ for scaling blockchains: Polygon Miden founder

1inch plugs into KuCoin Wallet to improve token swaps

1inch Network expands to another cryptocurrency exchange as KuCoin Wallet integrates its automated market maker functionality to improve token swaps.

Cryptocurrency exchange KuCoin will introduce native token swap functionality to its in-house wallet after integrating decentralized finance (DeFi) market maker 1inch’s application programming interface.

1inch’s Pathfinder algorithm will increase the functionality of KuCoin Wallet, the exchange’s recently launched decentralized wallet platform, which features cross-chain trading, and DeFi and nonfungible token (NFT) support.

The algorithm will aggregate liquidity from over 250 sources from automated market makers and proactive market makers across the DeFi ecosystem. 1inch plugs into liquidity sources running on nine different blockchain networks, providing a wide range of tradable asset pairs.

The partnership will also afford KuCoin Wallet users access to 1inch’s Limit Order Protocol functionality. These orders are filled at a predetermined price once it is reached. This includes gasless limit orders for Ether (ETH), requests for quotations on the blockchain and other tokens that require permits rather than transaction approval.

KuCoin Wallet head Jeff Haul noted that 1inch has established itself as a leader in the DeFi aggregator space, and its functionality should improve KuCoin Wallet’s offering to its users:

“Swap is a high-frequency feature of the wallet, and 1inch is one of the most popular DEXs in the Web3 industry, so we’re working together through native integration to provide a smooth and cost-effective trading experience for our users.”

KuCoin rolled out its browser-based self-custodial wallet in June 2022 and hinted at imminent support for DeFi, NFTs and GameFi. The original NFT functionality was powered by KuCoin’s proprietary NFT marketplace Windvane.

The exchange earmarked a $150-million pre-Series B fundraising round in 2022 to bankroll the development of Web3, DeFi and NFT services and offerings within its ecosystem.

1inch continues to expand its footprint across the cryptocurrency ecosystem, sealing a pivotal partnership with South Korea’s burgeoning metaverse blockchain Klaytn in August 2022.