1inch has launched its latest feature called Fusion+ for safe as well as decentralized cross-chain swapping. This feature enables the users to exchange assets between different blockchains while still being in control of their private keys.
Fusion+ is different from conventional bridges since it provides a faster and safer means of exchanging tokens without the need for trust. Fusion+ aggregates liquidity from all over Web3 and guarantees that swaps happen effectively.
It uses both on-chain and off-chain approaches to enhance the rates and ensure that customers get the best.
How Fusion+ Makes Cross-Chain Swapping Easier
Fusion+ eliminates the need for expensive and time consuming cross-chain bridges. However, it employs atomic swap technology to affect transactions. Atomic swaps make sure that the swapping is done to completion, or the assets are returned to the owners.
This all-or-nothing approach greatly minimizes the chances of a transaction failing. This means that atomic swaps are decentralized and will not need a third party to enable the exchange.
Thus, smart contracts regulate the whole swapped process and control the exchange based on the given conditions. This removes the need for users to seek for middlemen which introduces an added form of security.
Fusion+ has incorporated the Dutch auction mechanism in deciding the appropriate swap rates. Organized market participants called resolvers to engage in the process of offering to provide quotes at the most attractive rates for swaps.
This competition makes certain that the users receive the best value when they are making their transactions. Further, Fusion+ also has Maximal Extractable Value (MEV) protection integrated into it.
This feature therefore ensures that the order and time of transaction cannot be altered by the black hat hackers to benefit from such alteration. The users can be assured of their security and that they will not be cheated when they are making their transactions.
1inch Explains How the New Cross Chain Swap Works
1inch gave an example of the cross-chain swap function that is available. Let’s say that a user has some POL tokens stored in the Polygon network. They can exchange these tokens for Ether, ETH, on the Ethereum network through fusion+.
The user makes the order on the 1inch platform and provides all the necessary information. This order is also communicated to resolvers who place their bids to carry out the swap at the most favorable rate.
When a Dutch auction is initiated, the price comes down until the resolver accepts the offer that has been put forward. Once accepted, the resolver deposits these POL tokens to the Polygon network in an escrow contract.
They also deposit ETH in an Ethereum escrow following the same conditions as above. When the contracts are respective and active on both blockchains, the resolver releases the ETH for the user and mints the POL tokens.
Although the process may look time-consuming, it has a timelock protection mechanism as one of the steps. This feature excludes swaps that are not fulfilled within a specific period and return the assets to the owner.
Fusion+ is Currently in Beta Phase
Fusion+ is still in the beta stage at the moment. To activate it, users can go to the settings of the 1inch dApp and enable it. Once the testing phase is over, the feature will be enabled for all the users.
Once activated, though, it’s quite straightforward. Users choose the tokens they want to swap and then confirm the transaction, and they have to wait in the swap tab until the swapping is done.
1inch’s Further Expansion and the OKX Collaboration
1inch is one of the established protocols in the DeFi space and has a track record of introducing new features. The launch of Fusion+ is one example of how the platform is improving the experience of trading cryptocurrencies.
1inch is always trying to enhance the security, efficiency, and convenience of the decentralized finance ecosystem. Also, 1inch has integrated with OKX Wallet to improve token swaps for the users.
This partnership connects 1inch’s Swap and Fusion APIs into OKX’s multi-chain wallet. Currently, users have an opportunity to get access to liquidity through 497 decentralized exchanges (DEXs).
This integration enhances deeper liquidity to enable better swap rates and better security for all OKX users. It also offers protection against MEV attacks thus making it safer and faster to perform transactions.
The partnership will help 1inch further solidify its role in the decentralized trading industry.
