1inch announces an airdrop and its addition on FTX
- The 1inch network went online on December 25th.
- The platform is agile and offers what it calls “instant governance”.
- Six liquidity pools will be in formation by 28 December.
In a series of tweets, 1inch explained the basics of its instant governance function and its aggregation protocol. FTX tweeted that 1inch’s spots and futures contracts are now open.
The 1INCH governance token will be sent to portfolios with previous exposure. Uniswap used Crypto Genius this distribution method for the launch of its UNI tokens in September 2020. 1INCH, similar to about 45% of decentralised solutions, runs on Ethereum.
1inch also said that liquidity extraction would begin on 28 December for those providing liquidity via ETH, DAI, WBTC, USDC, USDT and YFI. The company tweeted that the distribution would represent “0.5% of 1inch’s token offer” until 10 January 2021. The terms of the exchange claim were as follows:
- Portfolio registered on the exchange before midnight on 24 December 2020 (UTC)
- One or more exchanges before September 15th OR
- A total of four or more trades, OR
- Volume of at least $20
The agility of 1inch
The founders of 1inch have designed the network to be very agile in the face of changing conditions. In a blog post, the company explains that their solution is called “instant governance”.
This allows owners of governance tokens to have a say on protocol changes in a DAO (Decentralized Autonomous Organization) environment. Working with a DAO model ensures transparency, efficiency and ease of use.
The 1INCH holders will first focus on two fundamental governance issues. The company writes that the aggregation protocol collects the “leftovers” from the moment the execution of transactions gains a better rate than the one quoted to the user.
Although the designers implemented DEX to offer the best possible prices, differences are likely. In a rapidly changing market, a change, which the platform calls a Spread Surplus, could emerge.
Currently, Spread Surplus is intended for users who refer others to the network. However, 1INCH holders can change this.
The other governance issue at stake is the liquidity protocol. This is the second version of the protocol and price impact fees are at the forefront. The fees increase to give an advantage to liquidity providers and 1INCH holders when volatility increases.
Holders of governance tokens can adjust several features of the Liquidity Protocol. These include fees for price impact and swaps, governance rewards and benchmarks, and the rollback period. The decay period is a means of affecting the price spread after a transaction. It acts as a security measure to help traders avoid head-on attacks.