1inch Launches Fusion+ for Cross-Chain Swaps

1inch: Leading the Way in DeFi Innovation

1inch has officially introduced Fusion+, an upgraded version of its intent-based swap product, aimed at enhancing cross-chain functionality. This new development allows users to retain full self-custody of their assets while ensuring seamless transactions between two networks without relying on third-party intermediaries.

Fusion+ Delivers Decentralized and Secure Cross-Chain Swaps

1inch, a leading decentralized finance (DeFi) platform, continues to push the boundaries of innovation with Fusion+. This upgrade integrates liquidity from across the Web3 ecosystem, providing users with convenient, secure, and decentralized swaps that are safeguarded by MEV (Miner Extractable Value) protection.

Traditional cross-chain swaps have often been slowed down by costly bridges or hampered by the risks associated with centralized exchanges. With Fusion+, 1inch seeks to overcome these challenges by offering a fully decentralized, self-custodial solution, tapping into Web3’s vast liquidity and delivering the best rates with unmatched security.

How Fusion+ Improves Cross-Chain Swaps

Fusion+ builds on the intent-based approach introduced by 1inch Fusion in late 2022. It also leverages groundbreaking atomic swap technology, a secure method that guarantees that either the transaction is completed in full or the assets are returned to their original owners. This technology is a true gamechanger, allowing fast, efficient, and secure cross-chain swaps from a single platform.

Users initiate Fusion swaps by specifying the minimum return they are willing to accept. From there, professional traders known as resolvers compete to execute the swap at the most favorable rates. The Dutch auction model determines pricing, with swap filling rates decreasing over time, influenced by swap volume, user presets for price and duration, and gas prices.

Atomic Swap Technology Enhances Security

One of the key features of Fusion+ is its integration of atomic swap technology. This mechanism ensures that cross-chain swaps are:

• Secure: Atomic swaps are all-or-nothing transactions. If a swap fails to complete, the assets are returned to their original owners.
• Trustless: Governed by smart contracts, both parties can swap assets without needing mutual trust or a third-party intermediary. The smart contract verifies all transaction conditions.

With this trustless system, Fusion+ cross-chain swaps provide an extra layer of safety, requiring users to keep the swap tab open in the dApp or application (available in the 1inch Wallet) until the swap is fully verified.

Fusion+ Beta Version Available Now

Currently, Fusion+ is available in beta. Users can manually enable cross-chain swaps in the Settings tab. Once the testing period concludes, the feature will be automatically activated for all users.

Fusion+ Mechanics: A Step-by-Step Process

To illustrate how Fusion+ works, consider a user holding POL tokens on Polygon who wants to swap them for ETH on Ethereum. Here’s how the process unfolds:

• The user enters their swap details, which are then shared with resolvers.
• A Dutch auction begins, with the price decreasing until a resolver accepts the order.
• The resolver deposits the user’s POL tokens into an escrow contract on Polygon, which includes a secret hash and timelock.
• Simultaneously, the resolver deposits ETH into an escrow contract on Ethereum, with the same secret and conditions.
• Once both contracts are active on-chain, the cryptographic secret is revealed, unlocking ETH to the user on Ethereum and allowing the resolver to claim POL on Polygon.
• If the swap isn’t completed within the timelock, the resolver cancels the contracts, and the assets return to their owners.

1inch Continues to Innovate in DeFi

Launched in 2019 during a New York City hackathon, 1inch has become a leader in the DeFi space, empowering Web3 users with innovative blockchain products. The platform is renowned for its 1inch Swap, which is currently the top DEX aggregator, offering secure and cost-efficient swaps across multiple liquidity sources.

The 1inch Wallet is also considered one of the most user-friendly and secure Web3 wallets, while 1inch Portfolio is a highly regarded DeFi tracker, providing accurate analytics on the market. In 2023, 1inch further expanded its ecosystem with the launch of the Developer Portal, offering an extensive suite of Web3 tools and services for developers.

FAQ