The upgrade aims to provide cost-efficient, secure, and profitable swaps for crypto investors by allowing them to place orders with a predetermined price and time range without paying network fees. The Fusion mode also includes updates to staking contracts and tokenomics, as well as protection against the maximum extractable value (MEV).
1inch Swap Engine Connects DeFi Users and Provides Liquidity Through Professional Market Makers
The 1-inch Swap Engine is a decentralized trading and matching system that connects DeFi users and provides liquidity for crypto trades through professional market makers. The Fusion mode allows users to exchange tokens on various decentralized exchanges (DEXes) without paying any network fees and choose the order execution time as needed. The 1-inch Swap Engine also offers limitless liquidity and uses a decentralized order-matching approach based on the Dutch auction model.
Fusion Upgrade Protects Against DeFi Investors From Sandwich Attacks and Offers Refunds Through Incentive Program
The Fusion upgrade adds an extra layer of security to 1-inch swaps by protecting users from sandwich attacks, which occur when a trader is exploited by filling orders in a way that takes advantage of the difference in price between two DEXes. In addition, 1inch has launched the 1inch Resolver Incentive Program, which will give resolvers a refund on the gas spent on filling users' orders in Fusion mode until the end of 2022. This program aims to encourage the use of the Fusion mode and ensure that it is cost-effective for users.
Bridge Attacks Continue to Pose a Threat to DeFi in 2023
Despite the Fusion upgrade and other security measures, experts believe that bridge attacks will remain a major challenge for the DeFi sector in 2023. Bridges, which connect different blockchain networks, can be vulnerable because they rely on the security of the chains they connect to. One technology that may help mitigate this risk is zero-knowledge proofs (ZKPs), which allow data to be verified and proven as accurate without revealing further information.
