Not Your Keys, Not Your Coins.
We all understand the importance of holding your coins and not having them on centralized exchanges. (See MTGOX). DEX activity has been exploding over the past 6 months, and for good reason. DEXs have proven to be fast, trustless, & decentralized. Win win!
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For some time now, Uniswap has been the industry leading DEX. Gas prices are affordable, contract execution seldom runs out gas before completion, and the liquidity depth is insane! With the recent version 2 release, the UI was also cleaned up. The numbers don’t lie, Uniswap is by far still the most popular DEX.
What makes 1inch better?
There are a few things that immediately pop out at me that make 1inch superior. Firstly, aggregation splits your order among the listed DEXs to reduce slippage. This is huge. DEX limit orders are also a thing, if you didn’t know. Lastly, DEX advanced routing – swap all the things!
Imagine your a whale and you want to complete a rather large order, but slippage on uniswap is eating into your profits. This is the answer for many. As time goes on, 1inch will become less dependent upon Uniswap as the dominate liquidity provider and slippage will reduce even further.
DEX Limit Orders
Yeah, you heard that right. If you didn’t already know, 1inch has DEX LIMIT ORDERS. Crazy right? You get the best of both worlds. Limit orders from CEX side, and the trustless manner of a DEX. This is some next level stuff. I highly recommend you try out the limit orders.
Using 1inch, they can convert their aDAi to DAI, the DAI to SUSD, and the SUSD to aSUSD by routing through any number of pools and DEXes. All of this can be done in one click, too. Gas cost are expensive, but with the release of ETH 2.0 soon™, those cost should come down considerably.
Will 1inch overtake Uniswap?
Maybe one day. But for now, it appears Uniswap has a big head start. I like Uniswap, but I love 1inch. It has more utility and reduced slippage over Uniswap. Keep in mind, DEXs are still quite young and there’s plenty of room to grow. We’re all friends here.