The 1inch Network has become a cornerstone in the decentralized finance (DeFi) ecosystem, known for its powerful aggregation protocol and user-first approach. While many are familiar with its core swap functionality, several lesser-known features highlight just how innovative and secure the platform truly is. In this article, we’ll uncover five surprising aspects of 1inch that even experienced crypto users might not be aware of—ranging from fee structures to smart contract security and deeper integrations across the Web3 landscape.
Whether you're a daily DeFi trader or just exploring decentralized exchanges, understanding these features can help you make smarter, safer decisions in your crypto journey.
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No Fees and Full Slippage Benefits for Users
One of the most user-friendly aspects of the 1inch Network is that it charges no swap fees. Unlike many other decentralized exchanges (DEXs) that take a cut from each transaction, 1inch passes all savings directly to the user. This decision was reinforced by the 1inch DAO, which voted to eliminate collection of swap surplus—commonly known as positive slippage.
Positive slippage occurs when market conditions shift favorably between the time a trade is initiated and when it’s executed on-chain. For example, if you're swapping ETH for USDT and the price improves slightly during execution, you end up receiving more USDT than originally quoted. On most platforms, part of this extra amount would go to the protocol. But on 1inch, 100% of positive slippage goes to you.
This policy not only enhances user trust but also positions 1inch as one of the most transparent and fair DEXs in the market.
Aggregating Liquidity from the Entire Crypto Market
Initially, the 1inch Aggregation Protocol sourced liquidity primarily from on-chain liquidity pools and professional market makers (PMMs). However, with the Fusion upgrade in late 2022, 1inch unlocked access to virtually unlimited liquidity by enabling resolvers—trusted traders who execute Fusion-mode swaps—to pull liquidity from across the entire crypto ecosystem.
These resolvers hedge their positions using advanced strategies, including derivatives like options and tapping into liquidity from centralized exchanges (CEXs). This hybrid approach allows 1inch to offer better rates and significantly reduce price impact—even for large trades.
For example, a user once swapped 3,700 WETH for USDT and received an average rate of 1,606.04 USDT per ETH, outperforming the prevailing market rate of 1,605.46 USDT at the time. That small difference translates into thousands of dollars in real savings—proving that 1inch doesn’t just match the market; it often beats it.
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Immutable Smart Contracts for Maximum Security
Security is paramount in DeFi, and 1inch takes it seriously by ensuring that all its core smart contracts are immutable—meaning they cannot be upgraded or altered after deployment. Once live on-chain, the code remains unchanged forever.
This design choice eliminates the risk of malicious or accidental modifications by developers or attackers. It also reinforces decentralization by removing any single point of control over the protocol’s logic.
Beyond security, immutability supports composability, allowing other protocols to build confidently on top of 1inch’s infrastructure. Projects like Summer.fi (formerly Oasis.app) use 1inch for automated lending position liquidations, while Furucombo leverages its logic for crafting complex transaction sequences—all relying on the predictability and permanence of 1inch’s smart contracts.
Seamless Integration with Leading Crypto Wallets
You might already be using 1inch without realizing it. The protocol is deeply integrated into some of the most popular self-custodial wallets, including MetaMask, Ledger Live, and Trust Wallet. When you initiate a token swap within these apps, there's a high chance that 1inch is powering the backend execution.
Data from May 2023 shows that on MetaMask alone—home to millions of Web3 users—1inch handled 83.3% of all swap transactions and accounted for 64.9% of total swap volume on Ethereum. These numbers reflect strong user preference driven by consistently better pricing and execution reliability.
By embedding directly into user wallets, 1inch removes friction and brings optimized trading to mainstream audiences—without requiring them to visit a separate interface.
Protection Against Vulnerable DEXs
Decentralized exchanges are not immune to exploits. Recent incidents involving platforms like Hashflow, SushiSwap, and Uniswap have highlighted vulnerabilities in router contracts that could potentially lead to fund loss if users interact directly.
Here’s where 1inch adds a crucial layer of protection.
When you swap directly on a DEX, you typically need to approve multiple smart contracts to spend your tokens. If any of those contracts are compromised, attackers could drain approved balances from your wallet.
In contrast, when you use 1inch to route a trade—even if it executes on the same vulnerable DEX—you only grant token approval to 1inch’s own smart contract. Thanks to its immutability and rigorous auditing process, this contract presents a much smaller attack surface. As a result, your funds remain protected even if the underlying DEX suffers a breach.
This shielding mechanism makes 1inch not just a price optimizer—but a security enhancer in an increasingly risky DeFi environment.
Frequently Asked Questions (FAQ)
Q: Does 1inch charge any fees for swaps?
A: No. 1inch does not charge any swap fees, and users retain 100% of positive slippage due to a DAO-driven policy prioritizing user benefits.
Q: How does 1inch get better prices than other DEXs?
A: Through its Fusion upgrade, 1inch taps into broader market liquidity—including CEXs and derivatives markets—via professional resolvers who minimize price impact and optimize execution.
Q: Are 1inch smart contracts safe?
A: Yes. All core smart contracts are immutable and thoroughly audited, meaning they cannot be altered after deployment, reducing risks of exploits or unauthorized changes.
Q: Can I use 1inch without leaving my wallet?
A: Absolutely. 1inch is integrated into major wallets like MetaMask, Ledger Live, and Trust Wallet, allowing seamless access to its aggregation engine during swaps.
Q: How does 1inch protect me from hacked DEXs?
A: Instead of approving tokens on potentially vulnerable DEX contracts, you approve them only on 1inch’s audited and immutable contract—greatly reducing exposure to exploits.
Q: Is 1inch only for advanced traders?
A: Not at all. While powerful under the hood, 1inch is designed for everyone—from beginners making simple swaps to pros optimizing large trades across chains.
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Final Thoughts
The 1inch Network stands out not just for what it does—but how it does it. From eliminating fees and protecting users against external vulnerabilities to leveraging cross-market liquidity and maintaining unchangeable smart contracts, every feature reflects a deep commitment to user empowerment and security.
As DeFi continues to evolve, protocols like 1inch are setting new standards—not only in performance but in trustworthiness and transparency. Whether you're swapping tokens daily or building the next big dApp, understanding these hidden strengths can make all the difference.
Stay informed, stay secure, and make every trade count.
Core Keywords: 1inch Network, DeFi aggregator, swap fees, immutable smart contracts, liquidity aggregation, Fusion upgrade, DEX security, positive slippage