1inch Expands Operations to Layer-2 Base

1inch has announced the launch of its liquidity aggregation services across various decentralized exchanges (DEX) on the Base network.

Expansion to Base:

• Announcement Date: On the evening of 24/08/2023, 1inch Network, a prominent DeFi liquidity aggregator, announced the launch of its services on Base, an Ethereum Layer-2 scaling solution incubated by Coinbase.

Details of the Deployment:

• Liquidity Aggregation: 1inch will source liquidity from DEXs such as Uniswap, Balancer, SushiSwap, and Base Swap to optimize user swap rates. Additionally, the limit order protocol will enable Base users to trade at desired prices, executing transactions when market prices match user-set prices.

Statement from Sergej Kunz:

• Co-founder’s Remarks: Sergej Kunz, co-founder of 1inch Network, expressed enthusiasm about the expansion: "We are excited to expand to Base. This promising Layer-2 solution, backed by a major investor like Coinbase, aligns perfectly with our philosophy of bringing the next billion users to blockchain."

1inch Network Overview:

• Market Position: 1inch Network is the largest DeFi liquidity aggregator by daily trading volume. It allows traders to access liquidity from multiple DEXs for token swaps. According to Dune, in the past 7 days, 1inch processed over $1 billion in trading volume, serving more than 2 million users.

Previous Integrations and Future Plans:

• Layer-2 Integrations: Before expanding to Base, 1inch had integrated with other Layer-2 networks, including Optimism and Arbitrum.
• Recent Developments: In July 2023, 1inch tested the Fusion trading feature. They also plan to launch a hardware wallet by the end of 2023, aiming to compete with major players like Ledger and Trezor.

Base’s Role in the Ethereum Layer-2 Ecosystem:

• Development and Launch: Base, developed by Coinbase, launched in February 2023 and opened its mainnet to developers in mid-July 2023. The official mainnet launch for global users occurred on 09/08/2023.
• User and TVL Growth: Base has attracted significant interest, reaching 100,000 users and $100 million TVL within a month, driven by social media hype from Friend.tech and the Onchain Summer initiative, including Coca-Cola's "Masterpiece" NFT collection.

Recent Integrations and Market Impact:

• Recent Additions: Compound joined Base last week, and stablecoin issuer Circle announced that USDC will be integrated with Base in September 2023, along with deployments on Polygon PoS, Polkadot, NEAR, Optimism, and Cosmos.
• Transaction Volume: According to The Block, Base's daily transactions have surpassed other leading Optimistic rollup solutions like Arbitrum and Optimism. On 23/08, Base’s 7-day average daily transactions reached 813,000, compared to Arbitrum’s 646,000 and Optimism’s 469,000.

The expansion of 1inch to Base signifies a significant step in enhancing liquidity options and trading efficiency on the Layer-2 network, further solidifying Base’s position in the DeFi ecosystem.