The decentralized finance (DeFi) ecosystem continues to evolve at a rapid pace, and 1inch is reinforcing its position as a leader in innovation with the launch of a new liquidity mining program. This initiative coincides with a critical upgrade to the 1inch Liquidity Protocol, now moving to version 1.1, which brings enhanced governance mechanics and improved security for participants.
This strategic update not only rewards liquidity providers but also ensures the long-term integrity of the protocol’s decentralized governance model. Whether you're an experienced DeFi user or just beginning to explore yield farming opportunities, this new phase of 1inch’s growth offers valuable incentives and a more robust infrastructure.
Key Details of the New Liquidity Mining Program
The new liquidity mining program will go live on January 9 at 00:00 UTC, introducing fresh opportunities for users to earn 1INCH tokens by supplying liquidity to select trading pairs. The following five pools are included in the initial rollout:
- ETH-1INCH
- ETH-DAI
- ETH-USDC
- ETH-USDT
- ETH-WBTC
A total of 1% of the 1INCH token supply—equivalent to 10 million tokens—will be distributed equally among these five pools over the course of one month. This means each pool will receive 2 million 1INCH tokens in rewards, shared proportionally among liquidity providers.
This program replaces the previous liquidity mining initiative, which concluded successfully with participants earning approximately 7.5 million 1INCH tokens, translating to an impressive average APY of 300%. Additionally, governance reward distributions have already paid out around 632,000 1INCH tokens over the past two weeks, highlighting the protocol’s ongoing commitment to decentralization and community participation.
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Protocol Upgrade: 1inch Liquidity Protocol v1.1
Alongside the new mining program, 1inch Liquidity Protocol version 1.1 introduces essential improvements, particularly in governance accuracy. A minor irregularity was identified in the earlier version that could potentially affect vote counting within the DAO. This has now been resolved in v1.1, ensuring that every governance vote is accurately recorded and weighted.
To participate in the updated program, users must migrate their liquidity from the previous version (v1.0) to the new protocol. This is necessary because v1.1 features new liquidity pools and updated smart contracts designed for better performance and security.
How to Migrate Your Liquidity
Migrating your assets is a straightforward process, though it requires a few deliberate steps:
Withdraw LP Tokens: First, exit the current liquidity mining program by withdrawing your LP (Liquidity Provider) tokens.
- Use “Claim” to collect your 1INCH rewards.
- Use “Withdraw” to remove part or all of your LP tokens.
- Or use “Exit” to claim rewards and withdraw all LP tokens in one transaction.
Use Migrator Tools: Once withdrawn, use the built-in migrator functions on the 1inch platform to transfer your LP tokens to v1.1.
- On the 1inch Swap interface, select Liquidity Pool v1.0 in the “You Pay” field.
- Choose Liquidity Pool v1.1 of the same pool in the “You Receive” field.
- Confirm the swap—this single transaction completes your migration.
Note: Ensure your wallet contains enough ETH to cover gas fees during migration.
Users coming from other protocols like Uniswap, SushiSwap, or Mooniswap can also migrate directly using dedicated migrator tools, streamlining cross-protocol transitions and reducing friction for DeFi users across ecosystems.
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Why This Matters for DeFi Users
The dual rollout of a new liquidity mining program and a protocol upgrade underscores 1inch’s focus on sustainability, security, and user empowerment. By fixing governance vulnerabilities and incentivizing active participation, the platform strengthens its foundation for long-term growth.
Moreover, offering equal token distribution across major stablecoin and wrapped asset pairs ensures broad accessibility and encourages balanced liquidity across high-demand markets. This approach benefits traders through tighter spreads and deeper order books while rewarding providers with predictable yields.
For users, this means:
- Higher confidence in governance fairness
- Continued earning potential through yield farming
- Smoother cross-protocol asset migration
- Enhanced security and transparency
Frequently Asked Questions (FAQ)
Q: When does the new liquidity mining program start?
A: The program begins on January 9 at 00:00 UTC.
Q: How many 1INCH tokens are being distributed?
A: A total of 1% of the total supply (10 million tokens) will be distributed equally across five pools over one month.
Q: Do I need to migrate my liquidity to participate?
A: Yes, you must withdraw your LP tokens from v1.0 and migrate them to v1.1 using the migrator tool on the 1inch Swap interface.
Q: Can I migrate directly from Uniswap or SushiSwap?
A: Yes, dedicated migrators allow users to move liquidity from Uniswap V2, SushiSwap, and Mooniswap directly into 1inch Liquidity Protocol v1.1.
Q: What was fixed in version 1.1?
A: A minor issue affecting vote counting in DAO governance has been resolved to ensure accurate and fair decision-making.
Q: Is there a deadline for migration?
A: While there’s no strict deadline, only users who migrate to v1.1 will be eligible for rewards under the new program.
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Final Thoughts
The launch of the new liquidity mining program and the upgrade to 1inch Liquidity Protocol v1.1 represent a significant milestone in the platform’s evolution. By combining attractive incentives with technical refinements, 1inch is creating a more secure, efficient, and user-friendly environment for decentralized trading and liquidity provision.
As DeFi continues to mature, initiatives like this set a strong precedent for balancing innovation with responsibility. Whether you're contributing liquidity or participating in governance, now is an excellent time to get involved.
Stay informed, stay secure, and make the most of your digital assets in one of DeFi’s most dynamic ecosystems.
Core Keywords: liquidity mining, 1INCH tokens, DeFi, liquidity provider, governance rewards, yield farming, protocol upgrade, DAO