The decentralized stock exchange and liquidation aggregator 1inch today announces the launch of the 1inch Limit Order Protocol. The new feature boasts 5 different security audits and will allow users to buy or sell assets at specific pricing targets on the Ethereum, BSC and Polygon platforms. The new feature will also be able to communicate with smart contract logic and execute orders based on Oracle data.
Limit orders were previously available to the DeFi ecosystem through various protocols, including Gelato and 0x, which used 1 inch. However, the team says the new protocol will be more gas efficient and secure in that it will not require administrator keys, and that the protocol will add additional value to the ecosystem through its ability to compose with other protocols, such as Uniswap v3.
Although the protocol immediately adds to the functionality of the 1inch exchange, there are several possible use cases to which external teams have been invited.
“In addition to the protocol, complex customized market-making tools could be built,” the announcement said. “For example, an instrument of this kind would facilitate earnings on a pair of assets pegged to the same currency as the USDC and DAI, which are pegged to the US dollar.”
In addition to a clear application in a trading environment or DEX, 1inch co-founder Sergei Kunz pointed to a possible use of the loan.
“Liquidation protocols can be implemented using our new protocol.” When the position is ready for liquidation, only a limit order can be given by an intelligent lending protocol contract, which will offer arbitrators to exchange a collateral token for a debt token through a unified and highly efficient interface / protocol, “he said.
Limit Order Protocol is not the only new release from 1 inch. Yesterday, Curve announced the launch of a new algorithm allows the protocol to create funds for volatile assets. 1inch was named the first partner of the new feature, with 1inch’s liquidity aggregation having access to the Curve TriCrypto fund at launch.