At present, decentralized trade and liquidity aggregator 1inch announce the launch of the 1inch Limit Order Protocol. The brand new characteristic boasts 5 completely different safety audits, and can allow customers to purchase or promote belongings at particular worth targets on Ethereum, BSC, and Polygon. The brand new characteristic will even be capable to work together with sensible contract logic, and be capable to execute orders primarily based on oracle information.
Limit orders had been beforehand out there to the DeFi ecosystem by a wide range of protocols together with Gelato and 0x, the latter which 1inch utilized. Nonetheless, the crew claims this new protocol shall be extra gas-efficient and safe in that it doesn’t require admin keys, and that the protocol will add further worth to the ecosystem by way of composability with different protocols, comparable to Uniswap v3.
Whereas the Protocol instantly provides to the performance of the 1inch trade, there are a number of doable use circumstances that exterior groups have been invited to discover.
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“On top of the protocol, complex, customized market making tools could be built,” reads the announcement. “For example, a tool of that kind would facilitate earning on a pair of assets pegged to the same currency, like USDC and DAI, which are both pegged to the US dollar.”
Along with clear utility in buying and selling or DEX environments, 1inch co-founder Sergej Kunz pointed in the direction of a doable lending use case.
“Lending protocol liquidations can be implemented by using our new protocol. When a position is ready to be liquidated, just a limit order can be placed by the lending protocol smart contract to offer arbitragers to exchange the collateral token for the debt token through a unified and highly efficient interface / protocol,” he mentioned.
The Limit Order Protocol isn’t the one new launch from 1inch. Yesterday, Curve introduced the launch of a brand new algorithm that permits the protocol to create swimming pools for unstable belongings. 1inch was famous as an early accomplice of the brand new performance, with 1inch’s liquidity aggregation accessing the Curve TriCrypto pool at launch.