DeFi has plenty of capital, but too much of it sits idle, fragmented or locked into single-purpose positions. The next step is not simply more TVL - it is liquidity that can actually work when and where demand appears.
DeFi does not lack liquidity. That may sound strange when users still face price impact, fragmented routes and pools that cannot handle larger trades efficiently. But the problem is not always the amount of capital sitting in DeFi. It is how that capital is used.
Huge amounts of liquidity are deposited in pools without doing meaningful work. Assets have been deposited on-chain, but are not consistently helping execution or earning fees.
At the same time, liquidity providers often have to divide one wallet balance across different protocols, pairs, price ranges and strategies. Once those tokens are deposited, they leave the wallet and become committed to individual pools or positions until the LP withdraws and reallocates them, or until the agreed lock period ends.
So the real question is no longer: how much liquidity is locked? It is: how much liquidity is actually usable?
Passive pools made DeFi openThe first major liquidity model in DeFi was simple: users deposit tokens into a pool, traders swap against that pool and liquidity providers earn fees.
This changed crypto markets. Anyone could provide liquidity. Anyone could trade. There was no need for a centralized order book or a traditional market maker.
The strength was openness. But the weakness was efficiency. In many pools, most capital is not close enough to the active trading range to be used often. It exists in the pool, but does not process many swaps. For liquidity providers, this creates a difficult reality: capital can be allocated, locked in a pool and still barely work.
Concentrated liquidity improved efficiency, but added complexityConcentrated liquidity tried to solve that problem. Instead of spreading liquidity across a broad price curve, LPs place capital in selected price ranges. When trades happen inside that range, capital works harder and can earn more fees.
This was an important improvement. But it shifted more responsibility to LPs. Now they need to think about ranges, price movement, volatility and rebalancing. If the market moves outside the selected range, the position may stop earning fees. The liquidity is still deposited, but it is no longer useful for current trading.
To cover more possible price movement, LPs may split their balance across several ranges. That gives them more positions, but each position is backed by only part of the original balance.
Concentrated liquidity therefore makes capital more targeted, but it can also make liquidity more fragmented and management more demanding.
Stable pools work well until the relationship breaksStable pools are built for assets expected to trade close to the same value: stablecoins, wrapped assets or similar tokens.
When the relationship holds, these pools can offer deep liquidity and low slippage. But the strength of the model is also its weakness. If one asset depegs or loses market confidence, the pool can become one-sided. LPs may end up holding more of the weaker asset. What looked like a low-volatility strategy can quickly become concentrated exposure to the token everyone else is trying to sell.
Stable pools solve a specific problem well. However, they do not solve the wider issue of idle and fragmented liquidity across DeFi. Capital is still deposited into an individual pool and committed to that pool’s specific purpose.
Managed strategies reduce manual workManaged LP strategies and vaults try to make liquidity provision easier. Instead of choosing ranges or managing positions manually, LPs deposit into a strategy that handles part of the work for them.
This can be useful. It reduces complexity and gives users access to more advanced liquidity management. But capital is still committed to one strategy. If that strategy is not capturing much flow, the capital may still sit underused. If better opportunities appear elsewhere, the LP often has to withdraw, move funds and reallocate them through additional transactions.
The interface becomes easier. The structural problem remains: liquidity is still locked into separate boxes.
Market makers help, but cannot cover everythingProfessional market makers use inventory, pricing systems and risk management to quote trades. In intent-based systems, professional participants can compete to fill orders and source liquidity from different venues.
This can improve execution, especially where public pools are too shallow. But market-maker liquidity depends on inventory and risk appetite. It may not cover every asset, every chain or every market condition. During volatility, spreads can widen and available liquidity can shrink.
Market makers are important. But they are not a full answer to DeFi’s liquidity problem.
Fragmentation is the root issueDEX trackers now count tens of millions of liquidity pools across hundreds of networks — the vast majority of them shallow or inactive.
For LPs, that creates a structural constraint: one deposited balance normally cannot back several opportunities at the same time. To participate across pools, ranges or strategies, assets must be divided into separate deposits. Once capital is split, efficiency can fall.
A simple example:
An LP provides liquidity for the same pair across three venues. One pool gets 80% of the trading volume that month. The other two share the remaining 20%.
If the LP split capital evenly, only one third of the balance sat where most fees were generated. The rest was technically allocated, but mostly watching from the sidelines.
The total deposit did not change. The fee capture did. This is why DeFi needs liquidity models that do not force LPs to divide one wallet balance before knowing where demand will appear.
TVL is not enoughFor years, DeFi measured success through TVL: total value locked. TVL is easy to understand. It tells you how much capital is deposited in a protocol. But it does not tell you how much of that capital is useful.
A pool can have high TVL and still contribute little to real execution. A strategy can hold large deposits while most liquidity sits away from actual demand. A network can look liquid on paper while routing still struggles in practice.
TVL also reflects a model in which tokens are transferred into pools and contracts. That capital may be locked, but locking it does not guarantee that it is active.
That is why DeFi needs a shift from TVL to useful liquidity. The better question is: How much capital can actually be applied when trades happen?
This is the logic behind TVU - Total Value Unlocked, - a metric 1inch introduced to capture exactly this shift. The focus moves from capital that is merely deposited to capital that remains available and can support execution across more than one position.
Why LPs feel the cost firstLiquidity inefficiency affects the whole market, but LPs often feel it first. They provide the capital. They take the risk. Yet a large share of that capital may not earn meaningful fees.
The problem becomes worse once impermanent loss is included. Impermanent loss occurs when the relative price of pooled assets changes after deposit: the LP can end up with less value than if they had simply held the tokens, even after fees. Concentrated positions can amplify this effect, since capital is exposed to price movement within a narrow band. Some LPs also face more advanced risks, such as Just-in-Time liquidity (see below).
LPs can also face unnecessary friction when they want to move capital. Tokens deposited into one pool cannot support another position unless the LP withdraws them, pays gas and reallocates them elsewhere.
This shows a larger point. LPs do not just need access to pools. They need structures that help liquidity stay active across more opportunities, remain under their control and move only when it is actually needed.
JIT liquidity weakens long-term LP economicsNot every liquidity problem comes from idle capital. Some arise because liquidity can be strategically timed.
One example is Just-in-Time (JIT) liquidity. Instead of providing liquidity continuously, sophisticated bots can detect a large pending swap, add liquidity immediately before it executes and remove it immediately afterward. The goal is to capture a share of the trading fees without keeping capital in the pool for longer than necessary.
For long-term LPs, this creates another source of inefficiency. They supply liquidity over extended periods, but some of the fees generated by large swaps can be captured by short-lived liquidity that appears only for those transactions.
This highlights another limitation of shared liquidity pools. They do not just fragment capital - they can also create opportunities for sophisticated participants to extract value from liquidity providers. As DeFi evolves, improving capital efficiency will also mean designing liquidity infrastructure that is more resistant to these kinds of strategies.
Current liquidity models have failed to fully solve a core issue: liquidity remains fragmented, underused and often locked into single-purpose structures.
The next model should change that assumption. It should let one balance support multiple positions instead of forcing LPs to pre-split capital. It should reduce idle liquidity. It should allow tokens to remain under the user’s control until they are actually needed for execution. It should help developers access useful liquidity without rebuilding the same infrastructure again and again. Most importantly, it should make existing capital work harder.
Explore 1inch to follow the next stage of DeFi liquidity infrastructure.
With limit orders in 1inch Wallet, you set your swap target price and keep full self-custody from your phone.
A swap is simple when you want to trade right now. But what if you want to buy only when the price drops? Or sell only when the market surges?
Until now, you could place limit orders only through the 1inch dApp. That meant opening a browser, connecting a wallet and managing trades outside the main wallet experience.
Now, limit orders are coming directly to 1inch Wallet. This gives you a cleaner way to place, manage and execute non-custodial limit orders without switching tools.
Why limit orders matterA market swap executes at the current available price. That is useful when speed matters. But it also means you accept the market as it is.
A limit order works differently. You choose the price at which you want to trade. The order can be filled only if market conditions reach your target.
For example, instead of swapping ETH for USDC immediately, you can set a target rate and wait. If the market reaches that rate and the order can be executed, it gets filled. If not, the order remains open until it expires or you cancel it. This is useful when you do not want to monitor prices manually.
It can help you:
buy only at a price you are comfortable with;sell only when your target is reached;plan trades in advance;manage DeFi trades from mobile more easily.Limit orders without leaving 1inch WalletNow, limit order functionality has been brought natively into 1inch Wallet. That matters because mobile traders should not have to move between interfaces just to use a basic trading tool. Wallets are where users hold assets, check balances and make decisions. Limit orders now fit into that same flow.
In 1inch Wallet, you can switch between a regular swap and a limit order from the trading screen.
You choose the asset you want to sell, the asset you want to receive, the price you want and the expiration period. Then you create the order directly from the wallet.
The experience is designed to feel simple on mobile while preserving the core benefits of DeFi: self-custody, transparency and programmable execution.
First, you select the token you want to sell and the token you want to receive. Limit orders work within a single chain, so the receiving token is selected on the same network as the source token.
Then you enter the amount. You can type the amount manually or use shortcuts such as 25%, 50%, 75% or max. If the amount is higher than your balance, the wallet will show an insufficient balance state and the order cannot be created.
Next, you set your target price. You can enter the price manually or use shortcuts based on the current market rate, such as market price or a percentage above or below it. You can also review the pair price in both directions, making it easier to understand the rate before creating the order.
Finally, you choose how long the order should stay active. If the market reaches your price before the expiry time and the order can be filled, execution can happen. If the order is not filled before expiry, it expires.
A better mobile trading flowLimit orders are especially useful when you have a clear target but do not want to stay online waiting for the market.
Imagine you want to buy a token, but only if it becomes 5% cheaper. With a regular swap, you would need to keep checking the price and act manually. With a limit order, you can set the target and let the order wait.
Or imagine you already hold a token and want to sell only if it reaches a certain level. A limit order lets you define that level in advance.
This brings 1inch Wallet closer to the trading experience users expect from advanced platforms, but without giving up self-custody.
Your assets remain in your wallet. You do not deposit funds into a centralized account. You create a non-custodial order that can be executed according to the conditions you set.
Supported networksLimit orders in 1inch Wallet support major blockchain networks:
Ethereum;BNB Chain;Solana;Polygon;Optimism;Arbitrum;Gnosis;Avalanche;zkSync EraBase;Linea;Sonic;Unichain.This gives traders access to limit order functionality across a broad DeFi environment, directly from mobile.
Trade on your termsLimit orders allow you to define execution conditions in advance, rather than acting on current market prices.
With limit orders in 1inch Wallet, you can define the rate you want, set the order from your phone and keep control of your assets throughout the process.
New data reveals: in DeFi, over $500 mln, or nearly one third of tracked liquidity, sits fully idle.
Does DeFi have enough liquidity? Yes. Is that liquidity working efficiently? No.
Recent research by on-chain analytics platform Dune (commissioned by 1inch) suggests that 85% of concentrated liquidity on decentralized exchanges is underutilized at any given time. That’s about $1.6 bln of the $1.84 bln tracked.
And around $542 mln of that sits fully idle and out of range in an average week.
This is a structural problem for DeFi. Liquidity pools have helped decentralized markets grow, but as tokenized assets and institutional capital move on-chain, the industry needs a more efficient mechanism.
How the research was conductedDune analyzed four major concentrated-liquidity venues:
Uniswap v3Uniswap v4PancakeSwap v3Aerodrome SlipstreamThe research covered seven networks: Ethereum, Base, Arbitrum, BNB Chain, Unichain, Polygon and Optimism.
Dune took weekly snapshots between January 6 and June 30, 2026. For each venue, researchers selected approximately 200 of the largest pools by trailing 30-day trading volume and kept that group fixed across the 26-week period.
This produced a panel of between 559 and 776 pools, with approximately $1.84 bln in average tracked capital.
Researchers also analyzed three constant-product venues - Uniswap v2, PancakeSwap v2 and Aerodrome’s basic pools - using the same methodology. These pools served as a baseline for assessing concentrated liquidity.
The scale of underutilized liquidityConcentrated liquidity lets liquidity providers choose specific price ranges in which their capital is available for trades.
The model can improve capital efficiency when the market price stays inside the selected range. But once the price moves outside that range, the position stops supporting trades and earning fees.
Across the 26 weeks covered by the research, an average of 29.5% of concentrated-liquidity capital was fully out of range.
The idle share generally remained between 25% and 35%, briefly rising to almost 41% in early February.
The cost to liquidity providers is significant. Dune estimates that out-of-range LPs forgo between $185 mln and $195 mln in fees annually.
The estimate was calculated by applying the blended in-range fee APR of approximately 40% over the period to the out-of-range TVL. The calculation used the fee tiers of Uniswap and PancakeSwap pools and bounded estimates for Aerodrome’s dynamic fees.
“Due to structural inefficiencies in DeFi, liquidity providers are leaving billions of dollars in underutilized capital and millions of dollars in fees on the table. If the industry is serious about bringing TradFi’s trillions on-chain, solving this needs to be priority number one,” said Sergej Kunz, 1inch co-founder. “Shared liquidity models and the advent of AI have the potential to create a far more efficient future for liquidity providers. That's why 1inch is set to launch Aqua, so LPs can maximize their capital and earn more from every dollar.”
"Decentralized exchanges have grown into one of the deepest, most liquid markets in crypto, and it is now competing with centralized exchanges and traditional trading venues,” added Filippo Armani, Research Lead at Dune. “What our research shows is that it has reached this scale even though much of its liquidity is not yet fully at work. It is easy to imagine what these venues will do as efficiency improves and institutional capital keeps arriving. Getting there depends on measuring liquidity precisely across every venue and chain, possibly real time, which is exactly the kind of on-chain visibility Dune has been building.”
Larger positions hold most idle capital
The research found that smaller positions were more likely to be out of range. Around 54% of positions worth less than $1,000 were idle, compared with approximately 26% of positions worth more than $1 mln.
But the largest positions still accounted for most of the idle capital.
Positions above $1 mln held approximately 47% of all idle liquidity, equivalent to roughly $260 mln. Positions worth more than $100,000 accounted for around 76%.
This suggests that underutilization is not limited to inexperienced or small-scale liquidity providers. Large, well-funded positions also drift outside their chosen ranges and stop earning fees.
Price direction matters more than volatilityThe research also examined why concentrated-liquidity positions move out of range.
The strongest factor was not volatility itself, but how far the market price moved in one direction over the week.
A highly volatile market can rise and fall before returning close to its starting point, leaving many positions in range. By contrast, a relatively calm but consistent price move can push large amounts of liquidity outside their selected ranges.
In other words, distance strands liquidity more reliably than short-term market turbulence.
No concentrated-liquidity design avoids the problemThe findings did not identify one protocol that consistently performed better across all markets.
When researchers compared the same trading pairs across different venues, the ranking changed from pair to pair. No single DEX was reliably more or less idle than the others.
Uniswap v4, despite being a newer architecture, recorded an idle share of around 30%, broadly in line with Uniswap v3.
Stablecoin pools also averaged around 30% idle liquidity.
Although stablecoins are designed to remain close in price, LPs often choose extremely narrow ranges only a few basis points wide. Even a small movement away from the peg can therefore push liquidity out of range.
Individually managed liquidity is more likely to sit idleMost out-of-range capital was held in individual wallets. On Uniswap v3, individually owned positions accounted for approximately 82% to 94% of idle capital across the networks where ownership could be attributed.
Capital managed by contracts, including active liquidity managers and market-making systems, stayed in range more consistently.
Incentives also helped. Aerodrome’s staked liquidity recorded the lowest idle rate in the study, at approximately 16%, because rewards are directed toward in-range capital.
However, incentives reduced the problem rather than eliminating it.
DeFi needs more efficient liquidityDeFi needs liquidity that remains available across changing market conditions. It needs models that reduce fragmentation, improve capital utilization and give LPs more opportunities to earn fees from the assets they already hold.
The next stage of DeFi will not be measured only by how much liquidity is deposited. It will be measured by how much of that liquidity is actually working.
Access liquidity across DeFi in the 1inch dApp.
Disclaimer: This report was commissioned by 1inch and prepared independently by Dune. The methodology, data collection, and analysis are Dune's own, and the findings represent Dune's independent conclusions. References to third-party protocols, including Uniswap, PancakeSwap, and Aerodrome, are made solely for research and informational purposes and do not imply any affiliation or endorsement. This report does not constitute financial advice.
Maple’s syrupUSDC and syrupUSDT bring tokenized lending positions closer to everyday DeFi trading.
Stablecoins are useful. But they can also sit still. Hold USDC or USDT in a wallet, and you hold a dollar-pegged asset. That is simple. But in institutional credit markets, stablecoins can also become productive capital. That is the idea behind Maple.
Maple is an on-chain lending platform for institutions. Trading firms can borrow stablecoins through Maple and post crypto assets, such as BTC or ETH, as overcollateralized security. Lenders provide stablecoins and receive tokens that represent their position.
Now, Maple’s syrupUSDC and syrupUSDT are available through 1inch.
That gives users and builders another way to access assets across DeFi, with 1inch providing routing and swap infrastructure.
What Maple doesMaple connects lenders and institutional borrowers on-chain.
In simple terms, borrowers receive stablecoin loans. They post crypto collateral. They pay interest on those loans. Lenders provide USDC or USDT and receive a token that represents their deposit.
For USDC, the flow looks like this:
USDC → deposit into Maple → receive syrupUSDC
For USDT, it works the same way:
USDT → deposit into Maple → receive syrupUSDT
But these tokens are not the same as plain stablecoins. USDC is a dollar-pegged stablecoin, not creating any earning opportunity. By contrast, syrupUSDC represents USDC that has been deployed through Maple’s lending system. Its value can increase as, while remaining subject to the risks of the underlying lending strategy.
That is where the RWA angle comes in. These are on-chain tokens connected to institutional credit activity, not just crypto-native trading pairs.
Tokenized credit as part of DeFi infrastructureRWAs are not only tokenized stocks or funds. Tokenized credit is also becoming part of the on-chain economy.
In traditional finance, credit positions are typically difficult to transfer and integrate with other financial infrastructure. Tokenization changes that. It allows credit positions to be represented, tracked and moved as on-chain assets.
For DeFi, that matters because it expands the range of assets that can move through decentralized infrastructure.
Stablecoins become more than settlement assets. Credit positions can become tokens. And those tokens can move through the same routing, swapping and wallet infrastructure that people already use across DeFi.
This does not remove risk. Lending markets still depend on borrower quality, collateral management, liquidity, protocol design and market conditions.
But it does make tokenized credit more portable and interoperable, allowing it to participate in the broader DeFi ecosystem alongside other on-chain assets.
What 1inch supports1inch now supports Maple tokens:
syrupUSDC - on Ethereum, Arbitrum and BasesyrupUSDT - on Ethereum and BNB ChainThese tokens are available across the 1inch ecosystem.
On 1inch.com, users can access them through Swap, Trade or Terminal. In Portfolio, users can track prices, balances and bundles.
For builders and institutional teams, Maple token swaps are supported through APIs available on 1inch Business.
1inch’s role1inch does not run Maple’s lending strategy. Minting, redeeming and lending remain on Maple’s side. Maple manages the credit product and the underlying lending mechanics.
1inch’s role is different: it helps users move into and out of these tokens through swap infrastructure. That distinction matters.
If you want to lend directly through Maple, you use Maple. If you want to trade syrupUSDC or syrupUSDT through available liquidity, 1inch can help route the swap.
This makes access simpler without turning 1inch into the issuer or manager of the asset.
Why routing matters for RWA tokensRWA tokens need more than issuance. They need liquidity. A token can be well designed, but if users cannot enter or exit efficiently, the market remains hard to use. Liquidity may be spread across venues, chains and pools. Prices may differ. A direct route may not always be the best route.
That is where 1inch intent-based swaps are useful.Instead of manually checking routes, users can express the trade they want.
For Maple tokens, this helps make trading more flexible. A user can move between stablecoins and syrup tokens through 1inch, while the routing layer searches for efficient execution across available liquidity.
Why this matters for stablecoin usersMany users understand USDC and USDT. They are simple, liquid and widely used across DeFi.
Maple tokens introduce a different question: what if a stablecoin position could also represent access to institutional lending activity?
That is the difference between holding a plain dollar stablecoin and holding a tokenized credit position linked to that stablecoin.
USDC is idle unless you do something with it. syrupUSDC is designed to represent USDC deployed through Maple’s lending system. USDT works the same way with syrupUSDT.
This makes Maple tokens part of a broader shift in DeFi: stablecoins are increasingly becoming the base layer for more advanced on-chain financial products.
Explore Maple tokens on 1inch.
Disclaimer: This content is for general information purposes only and does not constitute financial, investment, tax or legal advice. Not available in the US and other restricted jurisdictions.
1inch co-founder Anton Bukov says he has fully stepped away from the decentralized finance project’s operations after more than seven years and is now launching a new venture called Second Tier.
Summary
Anton Bukov says 1inch fired him in November 2025 after he pushed for management changes. Bukov says he remains a co-founder and 50% shareholder but no longer oversees company operations. 1inch says Bukov stopped active involvement in December 2025 and insists its systems remain unaffected. Bukov said the company fired him in late November 2025 after he pushed for changes to management and operations.
However, 1inch gave a different account of his recent role. The company said Bukov had not been actively involved in organizations linked to the project since December 2025. Bukov said he remains a co-founder and 50% shareholder but no longer has operational authority.
Bukov says management push ended with his firing In a statement published on X, Bukov said feedback from users and colleagues led him to become more involved in leadership and company operations. He said he spent months working on his leadership and communication approach while trying to change how the organization operated. “In late November 2025 I was fired,” he said.
Bukov also drew a clear line between his ownership position and his current responsibilities. “I no longer take part in the company’s operations,” he said.
He added that he has no role in product architecture or security and no oversight of either area. His statement leaves him as a shareholder and co-founder without a stated day-to-day management role.
1inch says operations and infrastructure remain unaffected 1inch responded on X by saying Bukov had not been actively involved in any associated organizations since December 2025. The statement presents a different timeline for his operational departure but does not change Bukov’s claim that the company dismissed him the previous month. The company has not publicly detailed the internal discussions that preceded the split.
We can confirm that Anton Bukov is no longer contributing to the 1inch project and has not been actively involved in any associated organizations since December 2025.
This does not affect the operation of 1inch Network or any associated organizations. The protocols,…
— 1inch (@1inch) July 16, 2026 Meanwhile, co-founder Sergej Kunz sought to reassure users about the project’s operations. He said Bukov’s departure “is not disrupting, will not disrupt, 1inch Network’s infrastructure or systems.” Kunz remains in charge as the protocol continues developing its trading and liquidity products.
Second Tier becomes Bukov’s next project Alongside his departure statement, Bukov announced Second Tier as his next venture. He said he is building the project with people who share the same values from the start. However, public information about its products, funding and launch schedule remains limited.
The move closes Bukov’s active operating role at a project he co-founded with Kunz in May 2019. During his time at 1inch, Bukov worked on protocol architecture and security, according to his account. The project later expanded from decentralized exchange aggregation into cross-chain trading tools and other DeFi infrastructure.
1inch continues expanding its DeFi products As previously reported by crypto.news, 1inch partnered with Rewardy Wallet in January to provide gasless cross-chain swaps across five blockchain networks through its Swap API. The integration formed part of 1inch’s broader effort to simplify decentralized trading while keeping users in control of their assets.
More recently, the leadership split comes after renewed attention on security across 1inch-linked infrastructure. In May, TrustedVolumes lost about $5.87 million after an attacker targeted its custom RFQ swap proxy. The incident did not affect a standard 1inch user swap route.
Kunz later called for safer lending structures following separate stresses in DeFi markets. Bukov’s latest statement now makes clear that he no longer oversees 1inch product architecture or security, while the company maintains that its systems and ongoing operations remain unaffected by his departure.
DeFi liquidity is not one thing. It comes from pools, ranges, vaults, market makers and intent-based systems - each with clear strengths and trade-offs.
What happens when DeFi capital isn’t where traders need it? That’s the liquidity problem.
When liquidity is deep, swaps feel effortless. You choose a token, confirm the trade and receive the asset you wanted at a fair rate.
When liquidity is weak, everything gets harder. Prices move against you. Routes fragment. Large swaps create high price impact. Liquidity providers may deposit capital but still earn less than expected.
DeFi no longer relies on one liquidity provision model. Different systems now compete to answer the same question: how can capital be made available where it is needed most? Here are the main liquidity models - and where each one works or breaks down.
Traditional AMM poolsAutomated market makers, or AMMs, are the classic DeFi liquidity model. LPs deposit two or more assets into a pool. Traders swap against that pool. The pool uses a formula to set prices, and LPs earn fees from trading activity.
The strength is simplicity. Anyone can provide liquidity. Anyone can trade. There is no need for a centralized order book or a traditional market maker.
This model helped DeFi scale because it made markets open by default. But the weakness is capital efficiency. In many AMM pools, much of the deposited liquidity does not actively support trades most of the time. Capital sits in the pool, but only part of it may be close enough to the active price range to earn meaningful fees. For LPs, that creates a problem: funds can be “deployed” but still underused.
Concentrated liquidityConcentrated liquidity tries to make LP capital work harder. Instead of spreading liquidity across all possible prices, LPs choose a price range. If trades happen inside that range, the capital can be more efficient and earn more fees.
The strength is better capital utilization. This model can support deeper liquidity around the current market price, which can reduce price impact for traders and improve fee capture for active LPs.
But the weakness is complexity. LPs have to choose ranges, monitor price movement and rebalance positions. If the market moves outside the chosen range, the liquidity may stop earning fees. This makes concentrated liquidity powerful for active or professional LPs, but harder for passive users.
Stable poolsStable pools are designed for assets that should trade near the same value. That usually means stablecoins or closely related assets, such as different versions of wrapped tokens.
The strength is low-slippage trading. When the assets stay close in value, stable pools can provide very efficient swaps. This makes them useful for stablecoin trading, payments, treasury movement and other low-volatility flows.
But the weakness appears when the relationship breaks. If one asset depegs or becomes less trusted, the pool can become imbalanced. LPs may end up holding more of the weaker asset. So stable pools work well for a specific type of liquidity, but they do not solve the broader issue of fragmented capital across DeFi.
Order book liquidityOrder book systems look more like traditional exchanges. Buyers place bids. Sellers place asks. Trades happen when prices match.
The strength is precision. Order books can work well for active markets, advanced trading and derivatives. They allow limit orders, visible depth and more familiar trading mechanics for professional users.
But the weakness is that order books need constant liquidity. They depend on active market makers and fast updates. Fully on-chain order books can also be expensive or slow on some networks, which is why many systems use hybrid designs.
Order books can be effective, but they are not always the best fit for long-tail assets or fragmented liquidity.
Managed liquidity vaultsManaged vaults make liquidity provision easier. Instead of choosing pools or ranges manually, LPs deposit assets into a vault. The strategy then manages allocation, rebalancing and execution.
The strength is convenience. Users do not need to manage every position themselves. This can make advanced LP strategies more accessible.
But the weakness is that capital is still usually committed to one strategy. If the strategy does not capture enough flow, the capital may still be underused. LPs also take on strategy risk and depend on the manager or automation behind the vault.
Managed vaults reduce manual work. They do not remove the deeper issue of capital being locked into separate structures.
Professional market makersProfessional market makers provide liquidity using inventory, pricing systems and risk management.
They can quote prices, support larger trades and source assets from different venues. The strength is execution quality. Market makers can be especially useful where public liquidity is thin. They can help support new assets, larger trades and intent-based execution.
But the weakness is availability. Market-maker liquidity depends on inventory, risk appetite and market conditions. During volatile periods, spreads can widen or liquidity can disappear. This makes market makers an important part of DeFi, but not a universal answer.
The shared problem: fragmentationEvery liquidity model has pushed DeFi forward in its own way. AMMs made decentralized trading accessible. Concentrated liquidity improved capital efficiency. Stable pools reduced slippage for similar assets, while order books brought more advanced trading capabilities. Vaults simplified liquidity management, market makers improved execution and intent-based systems made routing more flexible. Aggregators then connected fragmented liquidity across multiple venues.
Yet the same challenge remains. Liquidity is still spread across different pools, chains, strategies and trading venues. LPs must decide in advance where to deploy their capital, and if demand emerges elsewhere, that liquidity may never be used. As a result, there is often a gap between deposited liquidity and useful liquidity. A protocol may report high TVL, but only a fraction of that capital may actually be available when traders need it most.
From locked liquidity to useful liquidityThe next phase of DeFi liquidity should not be measured only by how much capital is locked. The better question is: how much of that capital can actually be used?
Useful liquidity is liquidity that can support execution when demand appears. It is not just sitting in a pool. It is available, active and connected to real trading flow. That shift matters for everyone.
For traders, it can mean better prices and lower price impact. For LPs, it can mean better capital utilization. For builders, it can mean less need to compete for isolated deposits. For DeFi, it can mean more efficient markets.
Liquidity provision is evolvingThere is no single perfect liquidity model. Each approach solves part of the problem and introduces its own trade-offs.
The important trend is clear: DeFi is moving away from simple locked capital and toward more flexible liquidity infrastructure.
That does not mean existing models disappear. AMMs, stable pools, vaults, market makers and aggregators will continue to matter.
But the market is starting to demand more. Liquidity needs to be easier to access, less fragmented and more productive. One promising direction is shared liquidity: capital that is not locked into one isolated pool or strategy, but can support multiple opportunities at the same time.
For LPs, this could mean better utilization. For traders, it could mean deeper and more available liquidity. For builders, it could reduce the need to compete for separate deposits across every venue.
Capital should not just sit on-chain. It should work where demand appears. That is the next challenge for DeFi liquidity - and one of the most important areas for the industry to solve.
Explore 1inch to access efficient routing across DeFi liquidity.
Bulletproof DeFi securityProtect your crypto against front-running, sandwich attacks and asset loss with MEV protection, wallet screening & more.
Wallet scanning, risk scoring and blocklists keep you safe from bad actors.
Learn more
Questions? Answers.
What is DeFi? DeFi (decentralized finance) is an infrastructure of financial services based on blockchain technology that lets people trade, lend, borrow and earn interest directly, without banks or intermediaries.
What is a DeFi exchange? A DeFi exchange is a decentralized platform that enables users to trade cryptocurrencies directly with each other using smart contracts, without intermediaries like banks or centralized exchanges. It gives traders full control over their funds and enables peer-to-peer transactions on the blockchain.
Is 1inch a DeFi exchange? 1inch Swap began as a DEX aggregator, combining liquidity across multiple exchanges to find users the best swap rates. Now, it’s a lot more - with intent-based swaps and cross-chain functionality built on atomic execution to keep assets safe. But it’s still built on the principle of uniting liquidity from across the ecosystem to make crypto swaps more efficient and return better token prices.
What is a DEX aggregator? A DEX aggregator helps users swap tokens by combining liquidity from several decentralized exchanges to secure better prices. The advanced DEX aggregator accessed through 1inch’s Pro interface can split a single trade across different platforms and market depth to reduce slippage and access better pricing. Explore better swap rates in the 1inch dApp or Wallet.
How are DEX aggregators better than DEXes? A DEX aggregator searches multiple DEXes to find the best token prices, lowest fees, and most efficient routes for your swap. This saves you time and money compared to using a single DEX.
How can I swap tokens on 1inch? To order a token swap on 1inch, go to the 1inch dApp or 1inch Wallet, choose the token you want to swap and the token you want to receive, select the network(s) and mode, then hit the Swap button. For more details, visit the Help Center.
Need to swap tokens now, at the current market price? A market order on 1inch lets you execute a swap immediately while 1inch searches across liquidity sources for an efficient route.
Let's imagine you want to swap tokens at the current available market price, without waiting for a specific price target to be reached.
In the moment, you don’t want to set a future price or wait for a limit order to fill. You want the swap executed at the best available rate right now.
That is what a market order does. On 1inch, this usually means making a standard swap: you choose the tokens, enter the amount and confirm the transaction.
A market order is an order to buy or sell an asset immediately at the current available market price.
In DeFi, this means your swap is executed using available liquidity across decentralized exchanges and other liquidity sources, like private market makers. The final rate can change slightly before execution, especially during volatile market conditions.
That is why 1inch shows important details before you confirm the swap, including the estimated rate, route and minimum amount you are expected to receive.
How to set a market order on 1inchTo place a market order on 1inch, open the 1inch dApp and select Market under the Trade tab.
Then:
Select the token you want to sell and the network you have it on.Select the token you want to buy and the network you want to have it on.Enter the amount.Check the slippage setting. Auto is set at 0.5%, but you can choose another percentage.Check the network fee setting. You can use the presets Aggressive and Market or set a custom amount.Confirm the swap in your wallet.Once confirmed, the swap is sent on-chain and executed according to the available market conditions.
Why use 1inch for market orders?Market orders depend on execution quality. A small difference in price, route or slippage can affect the final amount you receive.
1inch helps by searching across multiple liquidity sources to find an efficient swap route. Instead of checking different DEXs manually, you can use one interface to access aggregated liquidity.
This is especially relevant when swapping larger amounts or trading tokens with fragmented liquidity, where price impact and execution quality become more significant factors.
What to check before confirmingBefore you confirm a market order, always review the transaction details.
Pay attention to:
the token pairthe amount you are sellingthe estimated amount you will receiveslippage tolerancenetwork feesthe selected networkThese checks help you avoid simple mistakes, such as accepting worse execution than expected.
Market order vs limit orderA market order is for immediate execution. You accept the current available price and complete the swap now.
A limit order is different. With a limit order, you choose a target price, and the order executes only if market conditions match it.
Use a market order when speed matters. Use a limit order when price matters more than timing.
Swap tokens on 1inchMarket orders are the simplest way to swap tokens when you want execution now.
With 1inch, you can access aggregated DeFi liquidity, review key swap details and complete the transaction from one interface.
In the run-up to a major release, Aqua, we have strengthened our leadership team by appointing a chief product and technology officer and a new head of product design.
As Chief Product and Technology Officer (CPTO), Holly Atkinson will focus on shaping product strategy to ensure that 1inch continues to innovate with its core routing infrastructure and successfully launches a new shared liquidity product, Aqua.
Holly brings experience across full-stack engineering, blockchain architecture, product development and executive leadership. Before joining 1inch, she worked as a Blockchain Architect at The Sandbox, led metaverse technology initiatives at Boson Protocol and began her Web3 career as a Full Stack Engineer at Tracr.
1inch also welcomes George Evans as Head of Product Design. George joins us with more than 15 years of experience building and leading design teams at companies including Careem, Noon and Majid Al Futtaim. At 1inch, he will lead the product design function, focusing on creating intuitive user experiences, strengthening design across the product portfolio and ensuring design plays a central role in product development.
These appointments come as we prepare for major product launches. Following recent major integrations, including the partnership with Robinhood Chain to expand access to tokenized real-world assets, we are preparing the public launch of Aqua, a shared liquidity protocol.
As one of the company's most significant upcoming initiatives, Aqua is designed to address liquidity fragmentation across DeFi and contribute to the next generation of on-chain finance infrastructure.
Robinhood Chain brings tokenized real-world assets on-chain. 1inch makes them easier to trade.
What chain should you use to trade RWAs smoothly and efficiently? One answer is Robinhood Chain, an Arbitrum-based network specifically built for real-world asset trading. 1inch has integrated Robinhood Chain with a simple goal: make tokenized real-world assets easier to access, route and trade through 1inch.
“Robinhood Chain brings tokenized real-world assets on-chain,” says Sergej Kunz, 1inch co-founder. “Our role is to provide the infrastructure that makes them liquid and tradable. As one of the largest US retail crypto platforms enters the RWA market, efficient routing, deep liquidity and reliable execution become increasingly important. That’s what 1inch has spent years building.”
Bringing RWA swaps to 1inchRobinhood Chain is expected to become a high-visibility network for tokenized assets. For eligible users, this means a new network focused on real-world assets. Now, 1inch brings its routing and swap infrastructure to one of the most closely watched RWA ecosystems from the start.
As a launch partner on Robinhood Chain, 1inch supports RWA swaps on the 1inch dApp and in 1inch Wallet, helping eligible users access tokenized assets through a familiar DeFi flow. Beyond 1inch’s consumer apps, Robinhood Chain RWA swaps will also be accessible via the 1inch Swap API, available on 1inch Business alongside other APIs - enabling third-party apps and partners to integrate Robinhood Chain swaps directly.
No waiting for the bell. No fragmented manual routing. Just on-chain access through 1inch.
Why Robinhood Chain mattersRWAs are changing what can move on-chain.
Tokenized RWAs and other real-world assets can enable eligible users to gain exposure to more traditional financial products. But tokenization alone is not enough. These assets also need liquidity, pricing and reliable execution.
That is where swap infrastructure matters.
If users need to move between venues, chains and interfaces just to trade an RWA, the experience remains too fragmented. Robinhood Chain can bring assets on-chain. 1inch can help make them tradable.
Built for 24/7 tokenized marketsThe product promise is clear: traditional markets close at 4 pm, but tokenized markets can move around the clock.
With Robinhood Chain integration, 1inch aims to let eligible users swap tokenized real-world assets anytime during the work week, from anywhere, using the execution quality 1inch is known for.
This matters because RWA liquidity can be fragmented across issuers, venues and market participants. 1inch routing helps eligible users access available liquidity more efficiently, also supporting intent-based execution where available.
For RWA traders, that means less manual route hunting and a simpler path to execution.
Supporting the Robinhood Chain ecosystemThe integration is not only about users.
Token issuers, liquidity providers and ecosystem partners also need infrastructure that can support early network growth. By integrating and supporting Robinhood Chain at its launch, 1inch can help create a smoother trading environment for the assets and partners building on the network.
This is how DeFi infrastructure scales: not through isolated products, but through connected systems.
Robinhood Chain brings RWAs on-chain. 1inch helps make them swappable.
The next phase of RWA tradingRWA markets are moving from issuance to usability.
The next question is not only which assets can be tokenized. It is whether eligible users can actually trade them easily, efficiently and securely across DeFi.
By supporting Robinhood Chain, 1inch is one of the first major routing and swap platforms available on the network. This strengthens 1inch’s role in RWA execution and gives eligible users a new way to access tokenized asset markets through the 1inch dApp and 1inch Wallet.
Swap on 1inch across networks, including Robinhood Chain.
Disclaimer 1:
This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.
Disclaimer 2:
Not available in the US, UK, Canada, Singapore, UAE and Switzerland, and OFAC-sanctioned countries including Iran, North Korea, Syria, Cuba, Crimea/Donetsk/Luhansk regions.
For many crypto companies operating in Europe, the July 1 deadline is about licensing, market access and whether they can keep serving EU users.
How often has a crypto project operating in Europe had to ask the same question: are we actually compliant?
MiCA - the EU’s Markets in Crypto-Assets Regulation - is meant to make that answer clearer. It creates a common framework for stablecoins, exchanges, custodians and other crypto service providers across Europe.
July 1 is a key transition point. In jurisdictions that used the maximum grace period, existing crypto-asset service providers may need MiCA authorization to continue operating in the EU market after that date, depending on their specific activities and business model.
For centralized crypto companies, this creates a clearer path. For DeFi, the picture is less complete: MiCA is built around identifiable intermediaries, not decentralized protocols. That makes July 1 less of an endpoint and more of a starting point for Europe’s next crypto phase.
What MiCA is trying to doMiCA is the EU’s attempt to create a single crypto rulebook across member states.
Before MiCA, crypto regulation in Europe was fragmented. One country could have a licensing regime for custody. Another could rely mainly on anti-money laundering registration. A third could take a different approach again. That made life complicated for crypto businesses and users.
MiCA changes that by setting common rules for crypto-asset issuers and centralized service providers across the EU. The goal is to create legal clarity, improve consumer protection and make it easier for authorized companies to operate across the single market.
In practice, MiCA affects several groups:
crypto exchanges;custodians;brokers and trading platforms;crypto asset issuers;stablecoin issuers;companies providing crypto transfer, execution or advisory services.For crypto projects, the message is clear: if you want regulated access to the EU market as an identifiable service provider, understanding where you fit under MiCA is an important starting point.".
For DeFi projects, the message is more complicated. MiCA can affect teams, interfaces and service providers around DeFi, but it does not yet give decentralized infrastructure a dedicated rulebook that reflects how DeFi actually works.
Why July 1 mattersMiCA did not hit the whole industry at once. Rules for asset-referenced tokens and e-money tokens, including stablecoins, began applying earlier. The broader rules for crypto-asset service providers - CASPs - became applicable later, with transition periods for companies that were already operating under national regimes.
Some EU member states allowed existing providers to keep operating during a transition period while they applied for MiCA authorization. In several jurisdictions, the maximum transition period runs until July 1, 2026. That is why the date matters.
It is the point where the old patchwork model gives way to the new MiCA framework for many centralized providers. If a company has relied on national registration or a temporary permission, it may no longer be enough.
For users, that could mean changes in available platforms, assets or services. For crypto companies, it means market access becomes more closely tied to licensing status. For DeFi, however, July 1 does not resolve the central question: how should regulation apply to systems that are not built around a single intermediary?
The biggest change is that compliance becomes part of product strategy. Under MiCA, crypto projects can no longer treat EU access as an afterthought. If they serve European users, list assets for European customers or provide crypto services in the EU, they need to understand whether they are acting as a regulated provider. That can affect several areas.
LicensingCrypto-asset service providers need authorization to operate under MiCA.
This applies to activities such as custody, exchange, execution, placement, transfer services and operating a trading platform. The exact implications depend on the business model, but the direction is clear: many centralized service providers now need a license, not just a registration.
Once authorized, a CASP can use MiCA's passporting mechanism to offer services across the EU, subject to applicable notification procedures. That is one of the main benefits of the framework. The cost is higher compliance. The reward is broader regulated market access.
For centralized players, this is the part MiCA gets right. It offers a clearer route into the regulated European market.
For decentralized systems, the route is less clear. DeFi protocols do not always fit neatly into categories built for intermediaries that custody assets, operate platforms or provide services through a legal entity.
Stablecoin supportStablecoins have been one of the most sensitive areas under MiCA.
For exchanges, wallets and apps, this raises a practical question: which stablecoins can be offered to EU users?
MiCA creates stricter rules for issuers of e-money tokens and asset-referenced tokens. That means platforms may need to review stablecoin listings, issuer status, redemption arrangements and user access.
This does not make stablecoins less important. If anything, it makes compliant stablecoin infrastructure more important. Stablecoins remain one of the clearest bridges between traditional finance and crypto, but their role in Europe is becoming more regulated.
Token listingsMiCA also affects how crypto assets are offered and marketed.
Projects may need clearer white papers, risk disclosures and information for users. Trading platforms may need listing procedures and more structured controls around the assets they make available.
This matters especially for new tokens, RWAs and emerging asset categories.
The market is moving toward more documentation, more due diligence and more accountability.
For centralized platforms, that can be a workable path.
For DeFi, the question is how to protect users without forcing decentralized protocols into rules designed for centralized gatekeepers.
Operations and governanceMiCA is not only about getting a license. It also pushes crypto companies toward stronger operational standards. That can include governance, complaints handling, conflict management, custody safeguards, outsourcing controls and business continuity.
For younger crypto projects, this can feel heavy. But for institutional adoption, it can also be useful. Banks, asset managers and fintechs are more likely to work with crypto infrastructure when rules are clearer.
The challenge is to make sure the next stage of regulation also fits DeFi, where users interact with protocols, wallets, smart contracts and liquidity networks in a very different way.
A stronger market, but a tougher oneMiCA creates costs. Licensing takes time. Legal reviews become more important. Some projects may stop serving EU users if the compliance burden is too high. Smaller players may struggle more than larger platforms.
But MiCA also creates opportunity. A single EU framework can make the market easier to scale for companies that meet the requirements. Instead of navigating 27 different national approaches, authorized providers can build with a clearer route to cross-border operations.
For institutions, that matters. Banks and asset managers are unlikely to adopt crypto infrastructure at scale if the rules are unclear. MiCA does not solve every problem, but it gives European crypto markets a more defined regulatory foundation.
That can help bring more serious builders into the space. Still, the market will only be stronger if the next phase includes DeFi. Centralized crypto services now have a clearer path. DeFi still needs one.
The next phase: rules for DeFi“MiCA goes fully live on July 1st - and it gets one half of crypto right,” commented Orest Gavryliak, 1inch Chief Legal Officer. “Centralized players finally have a clearer way to operate inside a regulated framework, which the market has been waiting for. But MiCA is built around identifiable intermediaries. In its current form it wasn't designed for DeFi, and it doesn't work for it.”
“We see July as the start of Europe's crypto journey - not the end - and we're hopeful Europe follows the direction the US is taking with the CLARITY Act, giving DeFi a framework it can actually operate within,” he added. “We want to help build that next stage: working with regulators on the rules that actually apply to DeFi, for the users, the projects and the regulators themselves.”
Building a compliant solution? Consider APIs available on 1inch Business.
Disclaimer: This content is for general information purposes only and does not constitute legal, financial, tax or investment advice.
RWAs can look simple in a wallet, but every tokenized real-world asset has a structure behind it. To understand the risk, you need to know what the token represents, who stands behind it, how it moves and what rights it gives you.
If you’re holding or trading RWAs, it’s a good idea to know what you actually own.
You can access tokens representing thousands of equities, treasuries, funds, credit products and other assets.
But behind the token, there may be an issuer, a wrapper, offering documents, transfer rules, redemption conditions, investor restrictions and jurisdiction-specific limits. If you want to understand an RWA, you need to read the whole structure — not just the ticker.
That is where “observable RWAs” come in. The key question is simple: what can you verify about the asset, and what remains unclear?
Start with what the token actually representsThe first thing to ask about any RWA is not “What is the token called?” It is: what does the token actually represent?
A label does not define the asset. A token can be called a “digital asset,” “note,” “wrapper” or “on-chain product,” but the underlying exposure still matters.
Two broad categories are worth separating.
The first is DeFi-native synthetic exposure. This could include yield-bearing vault tokens, lending receipts or structured DeFi products that do not wrap an off-chain security. Here, the key question is what the law of each relevant jurisdiction says about that instrument.
The second is a wrapped real-world security. If a token represents shares, debt or fund units, the underlying instrument does not stop being what it is. A stock is still a stock. A bond is still a bond. A fund unit is still a fund unit.
Putting it on-chain does not remove the regulatory, legal or distribution rules attached to the underlying asset.
Look at the legal envelopeEvery RWA sits inside a legal envelope.
That envelope may include offering documents, terms and conditions, private placement memoranda, issuer disclosures or other legal materials. These documents often explain the most important parts of the asset:
who the issuer is;which jurisdiction governs the issuer;which jurisdiction governs the instrument;who is allowed to hold the asset;which persons or countries are restricted;what rights the token holder has;how redemption works;what happens if transfers are paused or restricted.This is where a lot of RWA risk becomes visible.
If the documents clearly explain the issuer, the instrument, the restrictions and the holder’s rights, the asset is more observable. If those details are missing or vague, the token may be harder to understand.
Understand the wrapperMany RWAs are not direct claims on the underlying asset. They are wrapped structures.
A wrapper is a legal or technical layer between the token holder and the underlying asset. It may be a fund, note, special purpose vehicle or another structure that holds or references the asset.
This matters because the wrapper defines the holder’s real position.
If the token gives the holder a direct claim against the issuer of the underlying asset, the recourse path may be clearer. The counterparty is identifiable, and the legal relationship may be easier to understand.
If the holder has a claim only against a wrapper entity, the analysis changes. The user’s rights depend on the wrapper’s own terms. The wrapper may have limited assets, limited operating history or unclear pass-through rights to the underlying asset.
This is especially important for wrappers built over institutional vehicles. A token may appear freely transferable on-chain, while the underlying asset was originally designed for a restricted investor base.
Check transfer mechanicsAn RWA is not only defined by documents. It is also defined by how the token moves on-chain.
Some RWAs are permissioned. That means transfers are controlled by an issuer-managed allowlist at the smart contract level. Only approved wallets can hold or receive the token.
In that model, eligibility is enforced by the issuer’s own infrastructure. Whitelisted participants are typically the ones positioned to interact directly with the issuer.
Other RWAs are permissionless. They may move like ordinary tokens, without contract-level checks on who can receive them.
That creates a different risk profile. If a token has no built-in transfer restrictions, the restrictions may need to be handled elsewhere — by interfaces, platforms, APIs or user-facing controls.
So, when looking at an RWA, check the transfer logic. Can anyone receive it? Is there an allowlist? Can transfers be paused? Can the issuer freeze addresses? These mechanics say a lot about how the asset actually works.
Read the distribution constraintsFor many RWAs, access is not global.
A tokenized equity, fund unit or credit product may be unavailable to users in certain jurisdictions. It may be restricted to qualified investors, professional investors or non-US persons. It may require KYC or KYB.
These restrictions usually come from several places at once.
First, the nature of the asset matters. A tokenized equity carries equity-related rules into the wrapper. A fund unit carries fund-related rules. A synthetic DeFi-native instrument may require a different analysis.
Second, the issuer’s own documents matter. Restricted-person and restricted-jurisdiction clauses often appear in terms, offering documents or private placement materials.
Third, platforms may apply their own conservative restrictions where information is incomplete or ambiguous.
The important point is that “not restricted in one document” does not always mean “freely available everywhere.” RWA distribution is usually layered.
Do not skip redemption rightsRedeemability is one of the most important parts of an RWA.
If something goes wrong, the key question is often: who can the holder make a claim against?
Maybe the token de-pegs from the underlying asset. Maybe redemptions pause. Maybe the issuer freezes transfers. Maybe liquidity disappears. In each case, the holder’s practical position depends on the chain of recourse.
A strong RWA structure should make this clear.
Can the token holder redeem directly with the issuer? Is redemption limited to certain participants? Does the holder only have a claim against a wrapper? Are there gates, delays, fees or minimums? What happens in stress conditions?
If the answer is hard to find, that is itself a risk signal.
What on-chain mechanics can showThe blockchain can reveal important information about an RWA.
You may be able to see:
the token contract;transfer activity;holder concentration;minting and burning;allowlist mechanics;freeze or pause functions;supply changes;liquidity pools;trading routes.This data can help you understand how the asset behaves in practice.
But on-chain data has limits. It can show token movement, but it usually cannot explain the full legal structure. It can show that tokens were minted or burned, but not always why. It can show who holds tokens, but not always whether those holders are eligible or what rights they have.
That is why on-chain mechanics should be read together with off-chain documents.
What structured data can show — and what it may missStructured RWA data sources can be useful. They can help track market size, issuers, asset categories, chains, token supply and other metrics.
But they do not always capture everything.
Issuer-specific restrictions, redemption terms, legal clauses and wrapper structures may not be normalized in public data feeds. In many cases, they still have to be read directly from documents.
This is one of the biggest challenges in the RWA market. Some data is visible on-chain. Some is available in structured form. Some is buried in legal documents. Some may not be clear at all.
A well-understood RWA is one where these pieces can be connected.
How to read an RWA before interacting with itBefore interacting with an RWA, ask a few simple questions.
What does the token represent? Who issued it? Is there a wrapper? Which jurisdiction governs the issuer and the instrument? Who is allowed to hold it? Are there restricted countries or restricted persons? Is the token permissioned or permissionless? Can transfers be frozen or paused? Can the holder redeem directly? Where does liquidity come from?
These questions do not remove risk. But they help you understand what kind of risk you are taking.
An RWA is easier to evaluate when the answers are observable. It is harder to evaluate when the structure depends on vague labels, incomplete documents or assumptions about what the token “should” mean.
Why observable RWAs matterRWAs can become a major part of on-chain finance. They can bring equities, credit, treasuries, funds and other assets into crypto-native environments.
But tokenization does not make complexity disappear. It often moves complexity into a new form.
The token is only the visible part. The real structure sits behind it: legal envelope, wrapper, transfer rules, redemption path, distribution limits and market data.
To understand an RWA, do not stop at the name of the token. Look for what is verifiable.
The more observable the structure is, the easier it becomes to understand the asset, the risks and the rights attached to it.
Disclaimer 1:
This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.
Disclaimer 2:
Not available in the US, EU, UK and other restricted jurisdictions.
Explore 1inch for more insights on DeFi infrastructure, on-chain trading and the future of tokenized assets.
Another multi-million-dollar attack has hit the DeFi sector after liquidity provider and market maker TrustedVolumes fell victim to a smart contract exploit on Thursday night.
TrustedVolumes Hit By $6.7M Hack On Thursday, DeFi platform TrustedVolumes, one of 1inch liquidity providers and market makers, suffered a new exploit that drained millions of dollars in multiple assets from the project.
According to reports from blockchain security firms PeckShield and Blockaid, the attacker stole approximately $6 million in Wrapped Ethereum (WETH), Wrapped Bitcoin (WBTC), USDT, and USDT after exploiting a vulnerability in the protocol’s core signature validation logic, which allowed them to bypass authorization checks and forge trading orders.
Notably, the hacker quickly exchanged all assets for 2.513 ETH on a Decentralized Exchange (DEX) and distributed them across three addresses. In an X post, TrustedVolumes confirmed the incident, sharing the addresses currently holding the stolen funds and updating the estimated loss to roughly $6.7 million.
TrustedVolumes confirms exploit. Source: X The vulnerability was a TrustedVolumes-controlled custom RFQ (request for quote) swap proxy. Crypto researcher Humphrey explained that “the Custom RFQ Swap Proxy contract contains a function designed to manage the ‘authorized order signer’ whitelist. Such whitelist mechanisms are common in DeFi—only addresses on the whitelist can issue valid transaction instructions on behalf of the protocol.”
However, he noted that “this registration function is public and lacks any permission modifiers.” As a result, the attacker exploited this public function within the contract, registering themselves as an authorized order signer.
“Since any external address can call this function, it is equivalent to giving everyone the ability to make a copy of the safe’s key,” the researcher continued.
Same Hacker, Different Attack The online reports revealed that the attacker was the same hacker responsible for the $5 million 1inch Fusion V1 Settlement contract exploit in March 2025, which TrustedVolumes was the primary victim.
Humprey highlighted that while the same individual carried out both attacks, they were significantly different on a technical level. According to the post, the 2025 vulnerability involved low-level EVM memory manipulation in the 1inch Fusion V1 Settlement contract.
At the time, the hacker “proactively initiated on-chain negotiations,” offering to return the stolen assets for a white hat bounty. The DeFi platform accepted the proposal, and most of the funds were safely returned.
Now, TrustedVolumes affirmed that it is “open to constructive communication regarding a bug bounty and a mutually acceptable resolution.”
Decentralized exchange aggregator 1inch clarified that there was no impact on its systems, infrastructure, or user funds, explaining that “TrustedVolumes operate independently as a liquidity provider, used by multiple protocols across the industry, and are not exclusive to 1inch.”
DeFi Exploits See Historic Surge This attack follows a wave of exploits that has shaken the DeFi sector over the past month. Last week, PeckShield revealed that the crypto space saw 40 major hacks in April, which drained approximately $647 million.
This figure represents a 1,140% Month-over-Month (MoM) increase from March’s $52.2 million. It also represents a 292% surge from the $165 million the DeFi sector lost during the first quarter of 2026.
Notably, the top two incidents of the month, Drift Protocol’s $285 million and KelpDAO’s $290 million exploits, accounted for 91% of the funds lost last month. In addition, they now rank among the Top 10 hacks since 2021.
ETH’s performance in the one-week chart. Source: ETHUSDT on TradingView Featured Image from Unsplash.com, Chart from TradingView.com
Growing concerns around quantum breakthroughs are starting to reshape conversations across DeFi.
Quantum computing is no longer a distant theoretical threat. That perception is rapidly changing. Recent research from Google, Quantum AI, Ethereum Foundation and Stanford suggests that breaking widely used cryptography could require far fewer quantum resources than previously believed.
The immediate risk is not that Bitcoin or Ethereum suddenly collapse tomorrow. The real challenge is timing: blockchains depend heavily on cryptography, and as blockchains become critical financial infrastructure, upgrading global financial infrastructure takes years.
That is why quantum computing is becoming a serious topic of discussion in the crypto industry, and DeFi appears to be better positioned to adapt to this potential threat.
Why quantum computing matters for cryptoModern blockchains rely on public-key cryptography to secure:
walletssignaturestransactionssmart contractsToday’s systems are secure against classical computers because deriving private keys from public keys is computationally infeasible.
Quantum computers could eventually change that.
In particular, researchers focus on Shor’s algorithm, a quantum algorithm theoretically capable of breaking elliptic curve cryptography (ECC), which underpins many blockchain systems. Google researchers recently estimated there is now a 10% chance that “Q-Day” — the point at which quantum computers can break modern public-key cryptography — could arrive by 2032.
That timeline remains highly debated. But the direction is clear:
quantum risk is increasingly treated as an infrastructure problem, not science fiction.
The growing urgency around post-quantum securityIn April 2026, Nature reported that recent quantum advances are “imminent risk” to cybersecurity infrastructure.
At the same time, Google and Caltech research suggested that the cost of breaking traditional encryption may be dropping faster than expected.
This has triggered broader conversations around:
post-quantum cryptography (PQC)quantum-resistant walletsmigration timelinesblockchain governance upgradesThe challenge is not just technical.
Crypto systems are decentralized. Upgrading cryptographic standards across:
Why DeFi could be especially exposedDeFi is highly composable and deeply interconnected.
That creates unique vulnerabilities in a post-quantum scenario.
If quantum systems eventually compromise private keys or signature systems, the consequences could cascade across:
liquidity poolslending marketscross-chain bridgesvault systemsDAOsSome analysts argue that dormant wallets with publicly exposed keys may become especially vulnerable over time.
This is one reason why a blockchain-specific variant of “harvest now, decrypt later” concerns is growing. Unlike traditional HNDL scenarios involving intercepted encrypted communications, blockchain data is already public. Public keys exposed in past on-chain transactions are permanently visible, meaning attackers would not need to harvest anything — the data needed to derive private keys with a future quantum computer is already sitting on-chain for attackers to collect.
DeFi’s advantage: adaptabilityIronically, crypto may also have an advantage.
Unlike traditional banking systems, blockchain protocols are designed to evolve through:
upgradeshard forksgovernance proposalsmodular infrastructureForbes recently argued that quantum computing represents less of an existential threat and more of a forced redesign of blockchain security architecture.
That adaptability may become one of DeFi’s biggest strengths.
Why this matters for the future of DeFiQuantum computing highlights a broader reality:
DeFi is becoming critical infrastructure.
As institutional adoption grows, the industry increasingly needs:
long-term security planningcryptographic agilityresilient execution infrastructureupgrade-ready protocolsThe conversation is no longer: “Will quantum computing affect crypto?”
It is increasingly: “How should crypto prepare?”
Challenge: preparationQuantum computing does not mean the end of crypto or DeFi.
But it does mean the industry will likely need to evolve its security foundations over time.
The good news:
post-quantum cryptography already existsmigration discussions are already happeningblockchain systems can upgradecrypto infrastructure is inherently adaptableThe challenge now is preparation.
As DeFi matures into global financial infrastructure, quantum resilience may eventually become as important as scalability, liquidity, and interoperability.
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In 2026, cross-chain bridges remain vulnerable. Learn why they are still one of crypto’s most dangerous weak points and why 1inch’s bridgeless cross-chain swaps are more secure.
Moving assets across chains should feel simple. You send tokens from one network and receive them on another.
But behind that simple flow sits a complex system of messages, proofs, validators, contracts and liquidity pools. If one link breaks, funds can disappear fast.
The latest reminder came from Verus Protocol’s Ethereum bridge, which was reportedly exploited for about $11.6 mln after a fake cross-chain transfer message tricked the bridge into sending funds from its reserves to an attacker-controlled wallet.
The case is still developing. But it fits a familiar pattern: bridges are not just moving tokens. They are asking one blockchain to trust information from another. That is where things get risky.
Verus: a fake message, real lossesAccording to the Cointelegraph report, security firms Blockaid and PeckShield flagged the Verus-Ethereum bridge exploit on May 18. The attacker reportedly drained assets including ETH, USDC and tBTC, then converted the funds into roughly 5,402 ETH.
Blockaid said the issue was not an ECDSA bypass, not a notary key compromise and not a parser bug. Instead, it pointed to missing source-amount validation in the bridge’s Solidity logic.
That detail matters. The attack was not only about stealing keys. It was about making the bridge believe that a cross-chain instruction was valid.
For DeFi, that is the scary part. A bridge can have real liquidity, real users and real contracts - but still fail if the message-to-execution logic is not strict enough.
Kelp: the biggest bridge-related hit so farThe largest bridge-related exploit reported so far in 2026 was the Kelp DAO attack. TechRadar reported that hackers allegedly stole about $290 mln after exploiting Kelp's LayerZero setup. Some security researchers have linked the attack to Lazarus Group.
LayerZero reportedly said the issue was tied to Kelp’s configuration, including its use of a single DVN. Kelp disputed that explanation. But the lesson is clear: cross-chain security is not only about the messaging protocol. It is also about how each project configures and operates it.
In the wake of the attack, 1inch participated alongside other protocols in efforts to assist with the recovery of assets affected by the incident on Aave.
Hyperbridge: small loss, big warningHyperbridge suffered a smaller exploit in April, but the mechanics were alarming. The attacker reportedly used a forged cross-chain message to gain control of a bridged DOT token contract, mint 1 bln bridged DOT tokens and sell them into available liquidity. Initial losses were reported at about $237,000, while a later assessment put realized losses closer to $2.5 mln.
The dollar figure was modest only because liquidity was limited.
That is an important distinction. Sometimes the exploit size does not show the real severity of the bug. A flaw that drains $2.5 mln today could drain far more tomorrow if the pool grows.
Why bridges keep breakingBridge hacks are rarely identical. Some involve stolen keys. Some involve fake messages. Some involve flawed validation. Some involve bad governance or operational controls.
But the core problem is usually the same.
A bridge has to answer one dangerous question:
Did something really happen on another chain?
If the answer is wrong, money can move when it should not.
That is why bridges are such attractive targets. They often hold large reserves. They connect multiple ecosystems. And they turn verification mistakes into direct withdrawals.
The old bridge problem is not solvedThis is not new. The Verus Cointelegraph report compared the incident to the 2022 Nomad and Wormhole exploits, two of the most infamous bridge failures in crypto history.
What is new is that DeFi is now more interconnected. More chains. More wrappers. More message layers. More abstracted UX.
That makes the user experience better. But it also increases the number of places where a small validation gap can become a major loss.
The bigger lesson for DeFiThe recent bridge hacks show that cross-chain bridge infrastructure is still one of DeFi’s hardest problems.
The industry is moving toward a multi-chain future. That future needs safer cross-chain operations, better validation, stronger monitoring and cleaner failure modes.
One solution is already available: 1inch cross-chain swaps. Instead of bridging and swapping assets manually, you define the tokens and chains you want to move between, and the protocol executes your instructions according to your specified parameters - without taking custody of your assets at any point. Learn more about 1inch cross-chain swaps here.
It’s Bitcoin Pizza Day. Behind the memes, plenty of users have a serious question. Can Bitcoin’s period of explosive growth ever repeat?
Sixteen years ago, an independent programmer named Laszlo Hanyecz ordered two pizzas from a Papa John’s on Atlantic Boulevard in Jacksonville, Florida. Ordinarily, it would have been an unremarkable takeaway order. What made it historic was the means of payment: Hanyecz paid 10,000 Bitcoin for the pizzas - worth roughly $41 at the time.
Hanyecz was one of Bitcoin’s earliest developers and contributed code to the project itself, including some of the first experiments with GPU mining. What he could not foresee was how dramatically Bitcoin’s value would rise in the years that followed.The question is, can that pattern possibly repeat itself? In 16 years’ time, will we be sharing memes about people who sold at $70,000? Or are the days of 1000x firmly behind us?
A decade of impressive growthBitcoin’s growth over the past decade has been one of the most dramatic examples of exponential adoption in modern financial history. When Bitcoin launched in 2009, it had effectively no market value. By 2013, it briefly crossed $1,000 for the first time.
In 2017, it surged close to $20,000 during the first major retail-driven crypto bull market. By 2021, Bitcoin reached nearly $69,000, and in 2025 it climbed above $120,000 amid accelerating institutional adoption and inflows into spot Bitcoin ETFs.
Adoption as a driverThis growth has not been driven by price alone. On-chain activity and adoption metrics have expanded significantly over time. According to Dune Analytics, the Bitcoin network now processes millions of weekly transactions and maintains millions of active addresses.
Institutional adoption has also accelerated Bitcoin’s expansion. The launch of spot Bitcoin ETFs in the United States in 2024 marked a major turning point. By mid-2025, US spot Bitcoin ETFs had attracted more than $50 bln in cumulative inflows, with major financial firms such as BlackRock participating directly in the market.
Will that repeat again?The big question many in the crypto community are asking is whether Bitcoin will ever repeat its past pace of growth. And this is where opinions differ.
Last month, Michael Saylor, head of Bitcoin custodian Strategy, reiterated an ultra-bullish long-term outlook for Bitcoin, projecting that Bitcoin could eventually reach $10 mln per coin.
Tom Lee, head of Ethereum treasury firm BitMine, repeatedly reaffirmed one of the most bullish near-term institutional BTC targets during early 2026 and maintained his famous $250,000 Bitcoin target.
Cathie Wood, CEO of ARK Invest, also remained one of the strongest institutional Bitcoin bulls throughout early 2026.
Meanwhile, skeptics are predicting Bitcoin’s collapse from the current levels.
Peter Schiff, a longtime Bitcoin critic, repeatedly warned of a major BTC collapse during early 2026. “Bitcoin could crash to $20,000 or lower.”
“There is no organic use case reason for Bitcoin to slow or stop its descent,” Michael Burry, an investor known for predicting the 2008 financial crisis, claimed, adding that if the Bitcoin price plunges to $50,000, BTC mining companies that secure the network and process transactions in exchange for fees and newly minted bitcoins could face bankruptcy.
1inch doesn't comment on price movements, and we never give financial advice. And you probably have your own take on this anyway. What we're interested in is utility. What excites us about DeFi isn't asset price fluctuation. It's the capacity this technology has to transform access to finance, for everyone around the world, and free us all to take true control of our assets.
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In April, the average RWA swap size on 1inch rose by roughly 91%, pointing to larger on-chain capital allocation.
RWA trading is entering a more serious phase. March brought a spike in activity. But April showed something that's just as important: larger trades.
According to recent 1inch data, average trade size almost doubled - from about $2,000 in March to around $3,800 in April.
What does that mean? It seems that users aren’t just testing tokenized real-world assets, but putting more capital behind them.
Let's understand the market with a deeper dive into the data.
RWA trading activity becomes more selective Q1 2026 was off to a strong start, with RWA tokens generating around $1.15 bln in total volume across roughly 578k transactions, in March alone. Data from April shows activity normalising, with approximately $575 mln in volume and around 152k transactions recorded during the month. However, the average trade size increased sharply, from around $2.0k in March to approximately $3.8k in April. This means that while there were fewer trades, those trades became significantly larger.
Source: 1inch Dune dashboard
RWA trading became less crowded, but the users who remained active traded in larger sizes. The number of active tokens stayed nearly unchanged, showing that the slowdown was not driven by a collapse in asset coverage or user interest across the category.
Leading RWA assets show strong equity and ETF demandOver the last 30 days, the largest RWA tokens by volume included CRCLon, NVDAon, QQQon, SNDKon and MUon. These assets show that user interest remains concentrated around tokenized exposure to major public-market themes, including large-cap equities, ETFs and semiconductor-linked assets.
Source: 1inch Dune dashboard
CRCLon remained the largest asset by volume, while NVDAon and QQQon continued to show strong demand. At the same time, SNDKon and MUon entered the top group, pointing to growing activity around semiconductor-related exposure.
Trading activity rotates into broader market themesOne of the healthier signs is the decline in top-token concentration. In the previous 30 days, the top five RWA tokens accounted for around 62% of total volume. In the last 30 days, that share fell to approximately 50%.
This suggests that RWA trading became less dependent on a small number of dominant assets. Activity started spreading across a wider basket of tokenized instruments, which is a positive signal for market depth and category expansion.
Source: 1inch Dune dashboard
The growth of SNDKon, AMDon, MRVLon, SPYon and INTCon points to a broader shift in user behavior. RWA trading is no longer only about a few headline assets. It is beginning to look more like on-chain access to traditional market sectors, including semiconductors, broad-market ETFs and large-cap equity exposure.
Q1 2026 was the burst phase, Q2 2026 is about the post-hype phaseWhile the first quarter of 2026 was marked by several intense bursts of RWA trading activity, with the strongest daily spike coming on March 10, when RWA volume reached roughly $128M and transactions climbed to around 200k. QQQon was the main driver of that day, contributing approximately $95M in volume.
Other major spikes occurred on March 25, March 11 and March 9, confirming that March activity was highly concentrated in several intense trading sessions.
Source: 1inch Dune dashboard
From April onwards, the pattern changed. The market looked calmer and more selective. There were fewer sharp transaction spikes, lower total volume and fewer trades overall. But average trade size rose, concentration fell and activity remained spread across almost the same number of assets.
The story is clear: early 2026 was the discovery phase. April onwards looks like the consolidation phase.
That suggests RWA trading is becoming more mature. March was about spikes, testing and high transaction counts. April was about larger tickets, wider distribution and more selective activity.
For the RWA narrative, that matters. The category appears to be moving beyond short-term trading bursts and toward more structured on-chain exposure to traditional financial assets.
Disclaimer: Data pulled on May 13, 2026. This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.
The CLARITY Act could give US crypto its clearest rulebook yet. The bill aims to define and categorize digital assets, who oversees digital assets, how crypto businesses must operate and what protections consumers should expect.
For years, US crypto regulation has revolved around one unresolved question: is a digital asset a security, a commodity or something else entirely?
The CLARITY Act is an attempt to finally draw that line.
Officially called the Digital Asset Market Clarity Act of 2025, the bill would split oversight among the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), U.S. Treasury with respect to AML/CFT requirements, set clearer rules for crypto trading platforms and strengthen consumer protection standards. The House passed it in July 2025. Now, the bill needs Senate approval before it can become law.
What the CLARITY Act is trying to fixThe US crypto market has grown faster than its rulebook.
Prior to the CLARITY Act, crypto and blockchain projects, exchanges and DeFi builders have operated under an unclear legal regime. There was no specific law that governed the industry; regulatory agencies such as the SEC and the CFTC have attempted to create guidelines often via enforcement action against industry players. These actions have led to some court decisions which have added some detail around when and how digital assets and those who build, trade, distribute or otherwise transact in them should be regulated, but without laws, there was no cohesive and comprehensive framework.
The CLARITY Act is the first comprehensive legislative attempt to turn that patchwork into a clearer framework for the industry to operate under.
In simple terms, the bill tries to define:
when a digital asset should be regulated by the SEC;when a digital asset should fall under the CFTC;how crypto trading platforms should register;how customer assets should be protected;what disclosures crypto businesses should provide;what anti-money launder (AML) and counter-terrorim financing (CFT) checks, record-retention, suspicious activities monitoring and reporting and customer identification requirements intermediaries (brokers, dealers, and exchanges) need to follow;when decentralized / non-custodial activity is excluded from regulation.That matters because uncertainty stifles innovation and creation. Builders need to know which rules apply. Traders need to know what protections exist. Traditional and digital native institutions need a legal framework before they can move deeper into digital assets.
Why consumer protection is centralThe CLARITY Act is not only about agency turf.
A major part of the bill is about making crypto businesses operate with clearer standards around custody, disclosures and the handling of customer assets. According to Axios, the legislation would require crypto dealers and brokers to segregate customer funds and disclose conflicts of interest — the very failures that brought down FTX.
Orest Gavryliak, chief legal officer at 1inch, sees this as one of the bill’s key strengths.
“The Act, through its many sections, establishes more detailed laws with regard to custody, segregation of customer assets, disclosure and operations, providing a solid foundation for consumer protection in the digital asset industry,” he said.
Consumer protection in crypto should not only mean warning people about risk. It should also mean building systems where risk is easier to understand, customer assets are handled properly and platforms operate under clearer rules.
What changes for DeFi?The CLARITY Act is mainly a market structure bill. That means it focuses on how digital asset markets are classified, regulated and supervised.
The latest draft contains DeFi carve-out exempting non-custodial software, UI providers, and blockchain developers from regulation, but the impact on DeFi would depend on the final text and how regulators implement it via rulemaking.
But the broad direction is clear: the US is moving from regulation by enforcement toward written laws that provide a clearer roadmap for the industry. That could make it easier for serious DeFi infrastructure to integrate with institutions, wallets, trading systems and future user interfaces.
This does not mean DeFi becomes risk-free. Smart contract risk, self-custody risk and market risk remain.
But clear rules can help weed out bad actors from serious infrastructure. That is good for users. It is also good for builders who want to operate transparently with high security standards.
Why the CLARITY Act matters beyond today’s crypto appsThe next wave of crypto use may not look like today’s DeFi.
More interactions could happen through AI agents. You may ask an agent to rebalance a portfolio, execute a swap, move assets across chains or interact with a protocol on your behalf.
That future needs rules before it becomes mainstream.
Orest says the CLARITY Act could help prepare the market for this shift: “Consumers will also benefit from non-traditional, crypto-related businesses. If passed, the CLARITY Act will also lay the groundwork for the next wave of interactions between users and AI agents.”
According to Orest, blockchain rails could become the backend for AI-driven finance.
“Blockchain rails will provide the seamless backend for AI to execute trades, handle investments and engage with networks and other AIs on users’ behalf,” he said. “Having a regulated, structured environment in place before that wave arrives is exactly the kind of forward-thinking consumer protection that matters most.”
The CLARITY Act is not only about today’s exchanges. It is about creating the foundation for digital asset infrastructure to support the next phase of automated, on-chain finance.
Where is the CLARITY Act now?As of now, the CLARITY Act is not yet law. The House passed the bill in July 2025 by a 294-134 vote. After that, the bill moved to the Senate, where it finally cleared the Senate Banking Committee on 14 May 2026 with a bipartisan 15–9 vote.
What happens next?The CLARITY Act still needs several steps before enactment.
First, the Senate Banking Committee and Senate Agriculture Committee are currently merging and reconciling their two draft versions of the CLARITY Act into a single version. The committees are aiming to finish this by June 2026.
Second, this version must pass the full Senate floor, which requires a minimum of 60 votes (out of 100 total votes). The target is to finish this in July.
Third, the version that passes the full Senate, must be reconciled with the House version passed last year. Both chambers must then pass the final, identical text. Again, the target is to finish this in July, before the August summer recess.
Finally, the bill goes to the president. It becomes law only after presidential signature.
If the bill misses the July window, it faces the risk that Congress will not advance controversial, structural bills right before Congressional elections, also known as mid-terms, as the Congressional elections are designed to occur midway through a President’s 4 year term. This could push negotiations into a post-election session which means it may be delayed to 2027 or beyond.
What to watch nextThe next important signals are practical.
Watch for:
agreement on stablecoin rewards clarity on what decentralization means, i.e. when and to whom does the DeFi exemption apply;Update on ethics provision related to President Trump's crypto holdings .Until then, the CLARITY Act remains a major legislative proposal, not binding law.
The bottom lineThe CLARITY Act is the most important crypto bill to watch.
If enacted, it could give digital asset markets a clearer legal foundation. It could also help prepare the industry for a future where DeFi, wallets, trading platforms and AI agents interact more directly.
For users, the key promise is simple: clearer rules, stronger protections and a more structured and secure environment for on-chain finance.
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Get started with self-custody in minutes. Learn how to create a wallet, manage assets and interact with DeFi - all in one place.
You’ve heard about DeFi, and it sounds great - more control, more independence, more visibility into what actually happens with your funds. But how do you get started easily and stay safe at the same time? That’s where 1inch Wallet comes in.
What is 1inch Wallet?1inch Wallet is a self-custodial, multi-chain mobile crypto wallet enabling you to:
store digital assetsswap tokenstrack the performance of your portfoliointeract with dAppsbuying and selling crypto with fiatThis guide walks you through how to set it up and use it effectively.
Step 1: Create or import your walletGetting started takes just a few minutes.
How to create a wallet:Download the 1inch Wallet appIf you already have a crypto wallet, you can import it by entering your seed phrase.If you don’t yet have a crypto wallet, tap “Create New Wallet”Set a wallet nameCreate a passcode and enable biometricsBack up your wallet using one of 3 available options - you don’t have to manually write the seed phrase down.The wallet is created instantly and is multi-chain by default, supporting multiple networks, such as Ethereum, Solana and BNB Chain and multiple other chains.
Important:
Your recovery phrase is the only way to restore access. Never store it online or share it with anyone. We recommend keeping it on paper (or better, stamp/engrave it onto metal) and store it somewhere secure. Make more than one copy and store them in separate physical locations (e.g., home safe + trusted second site), so a single accident or theft doesn't wipe out your only copy.
Step 2: Understand the interfaceWhen you open the wallet, you land on the main screen, which includes sections: Total balance, Assets, DeFi and Activity.
In Total balance, you can see the total value of your assets in USD or another currency (you can select it in Settings).
The Assets section displays all assets you have in your wallet and their total value in crypto and in fiat.
In the DeFi Positions section, you can track your lending, LP, staking, restaking yield and prediction-market positions across protocols and chains.
In the Activity section, you can see your transaction history.
Step 3: Fund your walletBefore using DeFi, you need to fund your wallet.
In 1inch Wallet, you can:
Buy crypto for fiat - click on Buy in the Actions section, and you’ll be taken to a crypto on-ramp providerReceive tokens via your wallet address or QR codeStep 4: Send tokensWhen you have crypto in your 1inch Wallet, you can send it to another wallet.
Confirm the transaction.Enter the receiver’s address Select the token, amount and network Click on the Send icon in the Actions sectionStep 5: Swap tokensSwapping is one of the core features of 1inch Wallet.
How to swap:
Tap the Swap icon in the Actions sectionSelect tokensEnter the amountReview the quote Confirm the transactionIn 1inch Wallet, you enjoy fast, MEV-protected swaps across multiple chains at the most competitive rates.
Step 6: Explore Web3 1inch Wallet also enables you to discover the hottest tokens across markets, track their live prices and market data, browse various dApps and check the latest crypto news. To interact with dApps, use the built-in Web3 browser.
Step 7: Stay secureSecurity is not optional in DeFi.
1inch Wallet includes built-in protections:
Clear signing and transaction results simulationScam warnings for tokens, addresses and transactionsBiometric authenticationBest practices to stay secure:
Never share your recovery phrase and keep it offline in a secure locationAlways double-check transaction detailsAvoid unknown or suspicious dApps*
1inch Wallet is designed to simplify DeFi without compromising control. Store assets securely. Swap tokens efficiently. Access dApps directly.
DeFi enables on-chain swapping, borrowing and earning through smart contracts, without relying on traditional financial intermediaries.
If you’ve ever swapped tokens, earned yield or borrowed crypto from a wallet, you’ve already used decentralized finance, or DeFi. Instead of relying on banks or brokers, DeFi uses smart contracts to execute transactions transparently on a blockchain.
That shift matters. DeFi changes how value moves by letting you interact directly with code. The result is a financial system that is open, composable and accessible to anyone with a crypto wallet.
DeFi, short for decentralized finance, is a system of financial applications built on blockchain networks that operate without centralized intermediaries like banks or brokers.
Instead of accounts and institutions, DeFi relies on:
Smart contracts to execute logicLiquidity pools to facilitate trading and lendingWallets to give users direct control over fundsIn practice, this means you can:
Swap tokensLend and borrow assetsEarn yieldProvide liquidityIn most DeFi interactions, you retain direct control of your funds through your wallet, without transferring custody to a centralized third party. Individual protocols may vary.
How DeFi actually worksDeFi works by combining smart contracts with on-chain liquidity and user-controlled wallets.
1. Smart contracts replace intermediaries
Smart contracts are self-executing programs deployed on a blockchain. They define the rules of a financial interaction and automatically enforce them.
For example:
A lending protocol locks collateral and issues a loanA swap contract exchanges tokens at a market rateA yield strategy distributes rewards based on participationOnce deployed, these contracts are designed to execute according to their coded logic.
2. Liquidity pools power markets
Instead of traditional order books, many DeFi platforms use liquidity pools.
Users deposit tokens into pools, and those funds are used to:
Enable token swapsFacilitate borrowingProvide market depthPrices are determined algorithmically, based on supply and demand within the pool.
3. Users interact via wallets
In DeFi, your wallet is your account.
You connect a wallet (like MetaMask or hardware wallets) to a dApp and:
Approve transactionsSign messagesRetain full control of your fundsThere are no usernames, passwords, or custodians holding your assets.
What can you do in DeFi?DeFi covers a wide range of financial use cases.
Token swaps
Users can exchange one token for another directly on-chain using decentralized exchanges (DEXs).
Lending and borrowing
You can:
Deposit assets to earn interestBorrow against collateral without selling your holdingsAll terms are enforced by smart contracts.
Yield generation
Users can earn rewards by:
Providing liquidityStaking tokensParticipating in incentive programsPayments and transfers
DeFi enables fast, global transfers without relying on banks or payment processors.
Why DeFi existsDeFi emerged to solve limitations in traditional finance:
Restricted access: Many financial services are not globally availableLack of transparency: Users cannot verify how systems operateIntermediary risk: Funds depend on third-party custodyDeFi addresses these by offering:
Open accessOn-chain transparencySelf-custodyRisks and limitations of DeFiDeFi is powerful, but not risk-free.
Smart contract risk
Bugs or vulnerabilities in code can lead to loss of funds.
Market volatility
Crypto markets can move quickly, affecting collateral and swap outcomes.
Liquidity risk
Low liquidity can lead to poor execution or higher price impact.
User responsibility
There is no customer support reversing transactions. Users must manage their own security and decisions.
How to start using DeFiGetting started is straightforward:
Create a crypto walletFund it with assetsConnect to a DeFi applicationStart with simple actions like swapsAlways verify:
The application you are usingThe token addressesThe transaction details before signingFrequently Asked Questions (FAQ)What is DeFi in simple terms?
DeFi is a system of financial services built on blockchain networks that operate without banks or centralized intermediaries.
Is DeFi safe?
It can be, but it depends on the protocol, smart contract security, and user behavior. Risks include bugs, volatility, and user error.
Do I need to create an account to use DeFi?
No. You only need a crypto wallet. There are no traditional accounts or intermediaries.
How does DeFi make money?
Users can earn through trading, lending, staking, or providing liquidity. Protocols may generate fees from activity.
What is the difference between DeFi and CeFi?
DeFi is non-custodial and runs on smart contracts. CeFi (centralized finance) relies on institutions that control user funds.
Can I use DeFi without technical knowledge?
Yes. Many interfaces are designed for everyday users, though understanding basic concepts helps reduce risk.
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Slippage can change how much crypto you receive from a swap. Learn why it happens, how it affects your trade and how to reduce the risk before confirming a transaction.
If you’ve ever confirmed a token swap and received a slightly different amount than the quote, you’ve seen slippage in action. It is the difference between the price you see when placing a swap and the price at which the transaction is completed on-chain.
That difference matters. Slippage can reduce your final output, cause a transaction to fail or make a trade feel worse than expected. The good news: you can manage it by understanding what causes slippage, how it differs from price impact and when to adjust your settings instead of forcing a swap through.
Slippage in crypto is the difference between the output you expected when you submitted a trade and the output you actually received when it executed.
That difference can go in either direction:
Negative slippage means you received a worse result than expected.Positive slippage means the market moved in your favor, and you received a better result than expected.Slippage is not a hidden fee or a network commission. It is simply a market effect that happens when prices move, liquidity is thin, or your trade takes time to finalize on the blockchain.
Why your swap output changesThere are four common reasons your swap output changes between the initial quote and final execution.
1. The market moved before confirmation
Crypto prices can change in seconds. If the broader market moves between the moment you sign the transaction and the moment it confirms, the final amount can change too. This is one of the most common causes of slippage in fast-moving, highly volatile markets.
2. Liquidity was too thin
If there is not enough liquidity near your quoted price in a specific pool, your trade may have to fill across worse levels to complete. That is why slippage is usually more noticeable on smaller, newer, or highly volatile tokens.
3. Your trade size moved the market
Large swaps can affect the price while they execute. In DeFi, the sheer size of your own order can worsen the rate you receive if the market is shallow.
4. Network delay gave the price more time to move
On-chain execution is not instant. If the network is heavily congested or your transaction waits longer than expected in the mempool, the market has more time to shift before your swap officially completes.
Slippage vs. price impactThese are related concepts, but they are not the same thing. Understanding the difference is critical for protecting your funds.
Price impact is the direct effect of your own trade's size on the market price of the pair.Slippage is the difference between the quoted result and the final executed result caused by external market movement and time delay.That distinction matters because a user can experience meaningful price impact from a large order, slippage from market movement during execution, or both at the exact same time. For a deeper technical breakdown of how to navigate this, read the official Help Center guide on price impact vs. price slippage.
What is slippage tolerance?Slippage tolerance is the maximum price deviation you are willing to accept before a swap fails, preventing it from completing at a worse result.
On 1inch, slippage tolerance is set as a percentage of the total swap value. If the returned token amount falls outside that allowed range between submission and confirmation, the smart contract safely reverts the transaction. Because market conditions constantly change, there is no single perfect setting for every swap.
What happens if your slippage tolerance is too high or too low?If your slippage tolerance is too high, the trade may still complete during sharp price movement, but you leave more room for a poor fill. Setting tolerance too high may increase exposure to MEV-related risks such as front-running and sandwich attacks, particularly in highly liquid markets.
If your slippage tolerance is too low, the transaction may fail if the price moves even slightly beyond your limit. While this protects you from a worse fill, you will still lose the network gas fee on the failed transaction. Failed swaps often display errors such as “Min return not reached” or “Exchange Rates Expired.”
How to reduce slippage on a crypto swapYou usually cannot remove slippage completely in live markets, but you can actively reduce your exposure to it.
Trade more liquid pairs: Deeper liquidity usually means less price movement during execution.Avoid sharp volatility when possible: If a token is moving aggressively, the gap between quote and execution is more likely to widen.Reduce order size if needed: A smaller trade is less likely to worsen its own execution. You can manually reduce price impact by reducing the amount swapped.Check whether the issue is slippage or price impact: If the “receive” amount looks too far from the market rate, stop and reassess instead of just raising your slippage tolerance. Always verify that the amount in the receive section matches the current market rate.Practical takeawayIf your swap output changes, it does not automatically mean something is broken. Most of the time, the market moved, liquidity was limited, your trade size affected the route, or your slippage settings did not match the current market conditions.
The practical habit is simple: check the expected receive amount, compare your slippage with the expected price impact, avoid forcing illiquid trades through, and use stricter settings only when the market conditions support them.
Frequently Asked Questions (FAQ)What is slippage in crypto?
Slippage is the difference between the quoted trade result and the final executed result. It can be positive or negative depending on how the price moves before execution on the blockchain.
Is slippage always bad?
No. Negative slippage means a worse result than expected, while positive slippage means a better one.
What is slippage tolerance?
Slippage tolerance is the maximum price movement you are willing to accept before a swap fails, preventing the transaction from executing at a worse result.
Why did my swap fail?
A common reason is that the market moved beyond your slippage tolerance before the transaction was confirmed. Low liquidity, high volatility, internal-commission tokens, and expired rates can also contribute to failed transactions. For step-by-step troubleshooting, consult the 1inch Help Center.
Is slippage the same as a network fee?
No. Network fees (gas) are paid to the network validators to process the transaction on-chain. Slippage refers exclusively to the difference between the quoted result and the final executed result of the tokens being swapped.
Can I avoid slippage completely?
Not usually. In live, decentralized markets, some price movement risk remains. You can reduce exposure by using more liquid pairs, keeping tolerance disciplined, and exploring intent-based execution methods like 1inch intent-based swaps, which are designed to reduce mempool exposure. As with all on-chain activity, results may vary depending on market conditions.
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Liquidity shapes the price, speed and execution quality of crypto swaps. Learn how it works so you can trade with fewer surprises and better execution.
If you’ve ever tried to swap a token and received a worse rate than expected, liquidity was probably part of the reason. In DeFi, liquidity determines how easily an asset can be bought or sold without moving its price too much.
That matters because liquidity directly affects slippage, price impact and execution quality. Once you understand how it works, you can make smarter trading decisions and avoid unnecessary costs.
Liquidity in DeFi refers to how easily a token can be bought or sold without causing a large change in its price.
High liquidity means:
Trades execute smoothlyPrices remain stableLarge orders can be processed efficientlyThese are general tendencies - market conditions can change rapidly even in high-liquidity environments.
Low liquidity means:
Prices can move sharplyTrades may execute at worse ratesTransactions can failLiquidity is not a fee or a setting - it is a property of the market itself.
How liquidity works in DeFiUnlike traditional markets, many DeFi platforms rely on liquidity pools instead of order books.
What is a liquidity pool?
A liquidity pool is a smart contract that holds tokens deposited by users (liquidity providers).
These tokens are used to:
Enable swapsProvide market depthFacilitate trading without intermediariesPrices are determined algorithmically based on the balance of assets in the pool.
Who provides liquidity?Liquidity in DeFi is supplied by users called liquidity providers (LPs).
They deposit token pairs into pools and, in return:
Earn a share of trading feesHelp maintain market functionalityHowever, providing liquidity involves risks, including impermanent loss - a situation where the value of deposited assets may be lower upon withdrawal compared to simply holding them. Users should research LP mechanics thoroughly before depositing funds.
Why liquidity matters for your swapsLiquidity directly affects how your trade executes.
1. Better prices
Deep liquidity means your trade can be executed close to the market price.
2. Lower slippage
When liquidity is high, price movement during execution is minimal.
3. Reduced price impact
Large trades in shallow markets can move prices significantly. Deep liquidity reduces this effect.
4. Higher success rate
Low liquidity can cause transactions to fail if there is not enough depth to complete the trade.
What happens when liquidity is too low?Low liquidity introduces several risks:
Higher slippage: worse execution than expectedPrice volatility: even small trades can move the marketFailed transactions: insufficient liquidity to complete swapsIncreased MEV exposure: thin markets are easier to exploitThis is why trading on illiquid pairs often leads to poor outcomes.
Liquidity vs. volumeThese terms are related but not the same.
Liquidity: how much capital is available for tradingVolume: how much trading activity occursA market can have:
High volume but low liquidity (volatile conditions)High liquidity but low volume (stable but inactive market)Understanding the difference helps explain why some markets behave unpredictably.
How to identify good liquidityBefore executing a trade, check:
Size of the liquidity poolDifference between expected and received amountPrice impact indicatorsOverall market activityIf the numbers look off, reconsider the trade instead of forcing it through.
How to trade more efficientlyYou cannot control liquidity, but you can adapt to it.
Trade more liquid pairsAvoid large trades in shallow marketsMonitor price impact before confirmingUse aggregation tools to access deeper liquidityThese habits help reduce unnecessary losses.
Practical takeawayLiquidity is one of the most important factors in DeFi trading.
If liquidity is high, trades are generally smoother and more efficient.
If liquidity is low, execution becomes riskier and more costly.
The practical habit is simple: check liquidity before trading, avoid illiquid markets, and use tools that aggregate liquidity to improve execution.
Frequently Asked Questions (FAQ)What is liquidity in DeFi?
Liquidity is the availability of assets in a market that allows trades to be executed without significantly affecting price.
Why is liquidity important?
It affects price stability, slippage, and whether your transaction can execute successfully.
What are liquidity pools?
Smart contracts that hold tokens and enable trading without intermediaries.
Who provides liquidity?
Liquidity providers - users who deposit assets into pools and earn fees.
What happens if liquidity is low?
You may experience higher slippage, worse prices, or failed transactions.
Can I improve liquidity?
You cannot directly control it, but you can trade in markets with higher liquidity.
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DeFi shouldn’t feel scary or complicated. The updated 1inch DeFi Academy helps you understand key concepts, make better decisions and move through DeFi with more confidence.
Maybe you’re totally new to DeFi. Maybe you’ve already made a few swaps, provided liquidity or tried to understand where yield comes from.
Either way, DeFi can quickly become overwhelming. Decentralized finance, slippage, tokenomics, liquidity, DeFi yield - there’s a lot to unpack.
So 1inch is leveling up our DeFi Academy: a learning hub built to explain the fundamental concepts of DeFi clearly and help make your journey smoother.
Explore the basicsWe recommending starting with the three fundamental posts, here:
What is DeFi? - a plain-language guide to decentralized finance and how it differs from traditional finance.What is slippage? - why the final price of a swap can differ from the expected price.What is liquidity in crypto? - how liquidity works, why it matters and how it affects trading.These topics are the foundation for almost everything else in DeFi. If you understand liquidity and slippage, swaps become easier to evaluate. If you understand DeFi itself, the wider ecosystem starts to make more sense.
DeFi education without the noiseThe goal of DeFi Academy is simple: explain complex concepts in clear language.
Crypto often makes basic ideas sound harder than they are. As a new user, you may see a term like “liquidity pool” or “yield farming” and assume it requires deep technical knowledge. But many DeFi concepts can be understood through simple examples.
DeFi Academy is designed to give you that starting point.
It does not promise risk-free trading or guaranteed results. But it does help you understand what you are doing before you act. That matters in DeFi, where users manage their own assets and decisions.
Better education can lead to better habits: checking swap details, understanding price impact, knowing where yield comes from and recognizing when a transaction may carry extra risk.
More guides are comingOver the next few weeks, 1inch will release new DeFi Academy articles covering more key topics, including:
decentralized exchanges;DEX aggregators;Ethereum network fees;and other essential DeFi concepts.Each guide will focus on one clear question and answer it without unnecessary jargon.
The aim is not to turn you into a protocol engineer. It is to help you understand the tools you use, the risks you face and the choices you make.
DeFi gives users more direct control over their crypto - alongside greater personal responsibility for managing risk. But control works best when it comes with understanding.
The relaunched 1inch DeFi Academy is here to help you build that understanding step by step - from the basics of DeFi to the mechanics behind swaps, liquidity, fees and more.
Explore 1inch DeFi Academy and start learning today.
Track lending, LP, staking, restaking yield and prediction-market positions across protocols and chains - directly in 1inch Wallet.
You made a prediction on Polymarket. You’re staking ETH. You’re lending USDT on Aave. Maybe you also have an LP position on another chain.
Tracking all of it should be simple. Instead, it often means jumping between dApps, checking different dashboards and trying to piece together your real DeFi exposure.
1inch Wallet solves this with DeFi Positions - a new feature that brings your protocol positions, performance and risk signals into one place.
Your DeFi portfolio, in one viewDeFi Positions make 1inch Wallet a single home for your active DeFi life.
The feature shows your positions across 1,200+ supported DeFi protocols and 13 chains, including:
lendingliquidity poolsstakingrestakingyield positionstrading derivativesprediction markets.Those last two categories are especially important these days. Derivatives and prediction markets are becoming two of the most watched DeFi use cases, as more users seek to use leverage in trading derivatives, and look for ways to express views on real-world events, crypto trends and market outcomes.
Now, 1inch Wallet helps bring those positions into the same portfolio view as the rest of your DeFi activity.
See value, PnL and rewardsKnowing that you have a DeFi position is not enough. You need to know how it is performing.
With DeFi Positions, you can track key position data directly in 1inch Wallet, including current value, PnL and rewards. This gives you a clearer view of what is working and what may be dragging performance.
Instead of opening multiple dApps to check lending, LP, staking or prediction-market exposure, you can start from one wallet view.
Risk signals where you need themDeFi positions are not static. LP ranges can move out of range. Lending health can deteriorate. Rewards can change. Market exposure can shift.
1inch Wallet now surfaces important position risk signals upfront, including LP out-of-range and lending health indicators. This gives you a faster way to spot what may need attention.
The goal is simple: your wallet should not only show balances. It should help you understand and proactively manage your active DeFi positions.
Your real wallet balanceIdle tokens tell only part of the story.
With DeFi Positions, protocol positions contribute to your total wallet balance and PnL. That means 1inch Wallet can show a more complete view of your net worth across tokens and active DeFi positions.
For active DeFi users, this is a major step toward a clearer portfolio overview.
Powered by 1inch Portfolio APIDeFi Positions are powered by the 1inch Portfolio API, the same backend that powers 1inch Portfolio.
That gives 1inch Wallet broad coverage across protocols, chains and position types, while keeping the experience simple for everyday use.
The first version of DeFi Positions includes the DeFi widget on the main screen and a list of positions in the DeFi tab. More detailed position views will be added in future versions.
Meanwhile, the 1inch Portfolio API is available on 1inch Business alongside other innovative DeFi solutions.
Start tracking your DeFi positionsDeFi is expanding beyond simple swaps and token balances. Lending, LPs, staking, restaking, yield strategies, derivatives trading and prediction markets all create positions that need to be tracked.
With DeFi Positions, 1inch Wallet gives you one place to see them.
Open 1inch Wallet and explore your DeFi Positions today.
DeFi is still young, but it has already seen enough drama, comedy and tragedy. reDeFine Money tells that story in the words of the founders and builders who created it.
What comes to your mind when you hear “DeFi”? Bubbles, hacks, forks, collapses, reinventions and moments of genuine breakthrough?
Want to make sense of how this industry was built - and why it survived when many centralized crypto institutions failed?
That is the idea behind reDeFine Money, a new book produced by 1inch and focused on the DeFi industry as a whole, not on a single project or person.
A first-person history of DeFireDeFine Money is a first-person oral history of the decentralized finance revolution, told by the people who built it.
The book features founders and builders from Aave, Curve, 1inch, MakerDAO, PancakeSwap, SushiSwap, Dragonfly, Dune and other major DeFi teams.
Among the interviewees are Sergej Kunz and Anton Bukov, co-founders of 1inch; Stani Kulechov, founder of Aave; Michael Egorov, founder and CEO of Curve; Rune Christensen, co-founder of MakerDAO; Fredrik Haga, co-founder of Dune; Kain Warwick, founder of Synthetix and co-founder of Infinex; and Eowyn Chen, ex-CEO of Trust Wallet.
Rather than a technical manual, the book reads as a collective memoir. It follows how a group of idealists, hackers and outcasts built a parallel financial system from scratch - and how that system kept working through crises that would have killed many traditional institutions.
DeFi as infrastructureThe central argument of reDeFine Money is simple: DeFi is not just a product, a trend or a speculative asset class. It is infrastructure.
The book looks at how DeFi created on-chain versions of exchanges, lending markets, stablecoins and trading infrastructure outside the traditional financial system.
A central argument in the book is that the 2022 crash did not break DeFi - and that in many ways, it demonstrated the resilience of transparent, on-chain infrastructure compared to centralized intermediaries.
Interviewees in the book reflect on how the failures of Three Arrows Capital, Celsius and FTX highlighted the risks of centralized intermediaries, and how on-chain protocols continued to operate through the same period.
Why 1inch produced the bookProducing a book is not a core product task for 1inch. But it fits a larger mission.
As DeFi moves closer to mainstream adoption, users need more than interfaces and protocols. They also need context. They need to understand where DeFi came from, what problems it tries to solve and why its design principles matter.
With reDeFine Money, 1inch aims to support DeFi education and help more users understand the industry’s history, failures and breakthroughs.
The project also reflects 1inch’s role as a thought leader in DeFi. 1inch was one of the teams that helped shape decentralized trading, and this book gives the wider industry a way to document its own story before that story is rewritten from the outside.
The story behind the next financial systemreDeFine Money explores several themes that now define DeFi’s direction:
DeFi as financial infrastructure.The failure of centralized intermediaries.Permissionless innovation.Self-custody and financial ownership.Building a parallel financial system on decentralized rails.These themes are not abstract. They come through in the personal stories of people who built protocols, survived market crashes and kept working through periods when much of the outside world dismissed DeFi as a temporary experiment.
The result is not a book about nostalgia. It is a book about what comes next.
The founders and builders featured in reDeFine Money largely point to the same future: not DeFi vs. TradFi, but a gradual rewriting of global finance on decentralized rails.
How to get the bookPhysical copies of reDeFine Money will be distributed at events where 1inch is participating.
To receive a free PDF version, sign up here. PDF versions will be distributed later this summer. We will announce it through 1inch social media channels.
Follow 1inch to get updates and learn when you can receive your copy of reDeFine Money.
RWA trading becomes easier to access, enabling more users to explore tokenized equities, collateral markets and new liquidity venues without getting lost in technical complexity.
You’ve heard about tokenized real-world assets, or RWAs. But maybe they still sound too technical, too institutional or simply too hard to use.
That is changing.
The RWA market is still growing, but the focus is shifting. It is no longer just about bringing assets on-chain. It is also about making them usable: easier to trade, easier to move and easier to access through wallets and DeFi infrastructure.
In this article, we look at the state of RWA trading in 2026, why this asset class is gaining attention and why it may be worth exploring sooner rather than later.
RWA trading is becoming more practicalThe market is no longer built only around one asset type.
Aave Horizon is pushing the institutional lending angle, connecting DeFi credit infrastructure with tokenized real-world collateral. Ondo has become the largest tokenized securities platform in the space, expanding from Treasuries to hundreds of stocks and ETFs with leverage trading via Ondo Perps. xStocks has similarly brought tokenized equities and ETFs on-chain, also with assets backed 1:1 by underlying securities and live across multiple chains.
NAV-style products point to another important direction: tokenized fund infrastructure. For funds and structured products, net asset value data is not a side detail. It is what lets markets price, redeem and manage exposure with more transparency.
Together, these products show where RWA trading is heading: from isolated issuance to active infrastructure.
Tokenized equities are the clearest user storyTokenized equities are quite easy to understand. People already know Apple, Tesla, Nvidia and major ETFs. What is new is that these assets can now move on-chain.
Kraken launched xStocks for eligible non-US clients in June 2025, starting with 60 tokenized US stocks and ETFs powered by Backed. Ondo launched Ondo Global Markets in September 2025, with a breakthrough liquidity model that taps into the liquidity of traditional exchanges. It quickly became the largest platform and was the first to surpass $1 bln in total value locked. Ondo tokenized stocks and xStocks can be traded 24 hours a day, five days a week and withdrawn to self-custodial wallets.
xStocks now presents itself as infrastructure for exchanges, DEXs, wallets, aggregators and liquidity venues, with more than 100 stocks and ETFs and support for tokenized equity routing across platforms. Ondo’s 260+ tokenized stocks and ETFs are increasingly being deployed as high-quality collateral across the DeFi landscape.
This is important for DeFi. Once tokenized equities are transferable on-chain, they can become part of a wider trading and collateral ecosystem.
Liquidity is still the main challengeTokenization alone does not create a market.
A 2025 academic paper on RWA liquidity warned that many RWA tokens still suffer from low trading volume, long holding periods, limited active users and weak secondary markets. The paper describes liquidity as one of the core bottlenecks for the sector.
This is exactly why routing matters.
RWA liquidity will not appear in one place. It will be spread across issuers, chains, venues, pools and market makers. For traders, that creates price gaps and execution risk. For apps, it creates integration work.
Aggregated routing can help solve this problem by connecting fragmented liquidity into a single execution layer.
1inch and the RWA execution layer1inch has already integrated Ondo and xStocks, reflecting a broader shift in the market: RWA trading needs more than issuance. It needs reliable access and efficient execution.
For tokenized equities and other RWAs, the role of aggregation is straightforward:
find liquidity across venues;reduce manual routing for traders;help apps support more assets without rebuilding every integration;improve execution where liquidity is fragmented.That is the same problem 1inch was built to solve in DeFi.
As RWAs move on-chain, the execution layer becomes more important. Traders do not want to think about which venue has the best route. They want the asset, the price and the transaction to work.
The 2026 takeawayRWA trading in 2026 is no longer just about putting traditional assets on-chain.
The real test is whether those assets can become usable in DeFi.
Aave Horizon, Ondo, xStocks and NAV-style products all point to the same direction: more real-world value is entering blockchain rails. But the next stage depends on liquidity, routing, compliance-aware access and better UX.
Tokenized assets need markets. Markets need execution. And execution needs infrastructure.
Disclaimer 1:
This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.
Disclaimer 2:
Not available in the US, EU, UK and other restricted jurisdictions.
Explore 1inch to access efficient DeFi routing across the on-chain economy.
A collaboration between 1inch, Ondo and Ledger shows: the next phase of DeFi is being built through joint effort across the ecosystem.
Ledger has introduced an RWA swap capability, enabling Ondo’s tokenization infrastructure powered by the 1inch Swap API. This is a clear example of how wallets, liquidity layers and asset platforms work together to expand what’s possible on-chain.
This kind of multi-party integration is how DeFi moves forward: not through isolated products, but through interoperable infrastructure connecting users, liquidity and new asset classes.
Meanwhile, institutional adoption of real world assets (RWAs) is accelerating. Currently, global RWA value across all chains stands at just under $400 bln. Across the industry, more capital and more platforms are turning to blockchain infrastructure to access traditional financial instruments.
RWAs in Ledger: speed and security
Thanks to the introduction of Ledger swap capability, users can access global markets 24/7. No gas fees. No bridges. Just best-execution swaps secured by the clear signing in a Ledger signer.
Usually, trading real-world assets (RWAs) means choosing between the speed of a hot wallet or the clunky UX of a bridge. Now, users get the best of both worlds: 1inch guarantees gasless and efficient swaps, while users’ private keys remain offline, protected by the Ledger signer.
1inch provides infrastructure for RWA swaps
As the RWA segment expands, the importance of liquidity aggregation becomes increasingly clear.
Fragmented markets need routing, pricing and execution infrastructure that allows users and partners to access liquidity efficiently across multiple venues. That’s where 1inch’s aggregation layer plays a central role.
By connecting decentralized liquidity sources and optimizing execution routes, 1inch enables seamless access to tokenized asset markets within the broader DeFi ecosystem.
Since announcing the Ondo integration in September 2025, trading of Ondo tokenized assets via the 1inch aggregation infrastructure has surpassed $5.4 bln, according to the 1inch analytics dashboard. This milestone highlights both strong user demand and the importance of efficient liquidity routing when new asset categories enter DeFi.
Meanwhile, in May, the most popular Ondo RWAs on 1inch by volume were:
Micron Technology (MUon) - $145.2 mlnCircle Internet Group (CRCLon) - $107 mlnMarvell Technology (MRVLon) - $50 mlnNVIDIA (NVDAon) - $49.5 mlnIntel (INTCon) - $45.6 mlnIntegration as a path to scalable DeFi
The collaboration between Ledger, Ondo and 1inch shows how ecosystem partnerships unlock new capabilities without requiring each participant to rebuild the entire stack from scratch.
Together, these layers form the foundation of scalable DeFi infrastructure - and point to where the industry is heading.
The rise of tokenized assets reflects a broader shift: traditional finance and decentralized finance are no longer separate systems, but increasingly converge through shared infrastructure. Blockchain provides a programmable, globally accessible layer for liquidity and settlement. Integrations between wallets, protocols and asset platforms expand what users can do on-chain.
This is how DeFi evolves - through connected infrastructure. And when more builders integrate, the entire ecosystem moves forward.
Disclaimer 1:
This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.
Disclaimer 2:
Not available in the US, EU, UK and other restricted jurisdictions.
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SpaceX is one of the world’s most watched private companies. Its tokenized versions issued by Ondo and xStocks, will be available through 1inch on June 12.
This Friday 12 June will see what should be one of the biggest IPOs in history: Elon Musk’s SpaceX.
And thanks to tokenized RWAs, millions of people around the world will be able to participate - even if they don’t have direct access to US financial markets.
SPCXx, issued by xStocks, and SPCXon, issued by Ondo Global Markets, will be available on 1inch, giving eligible users a new way to access this market directly from DeFi.
What are SpaceX RWAs?
RWAs, or real-world assets, are tokens that represent exposure to assets off-chain (outside crypto). These can include equities, bonds, funds, commodities or private-market assets.
SPCXx and SPCXon are not the same thing as directly holding SpaceX shares. The exact structure depends on the issuer. In some cases, a token may represent indirect exposure through a regulated structure, fund, note or other wrapper.
That distinction matters. Before trading any RWA, you should understand what the token represents, who issued it, what rights it gives you and whether you are eligible to hold it.
Why SpaceX RWAs matterAccess to the US stock market can be complex and expensive for ordinary people outside the USA.
Tokenized RWAs can help bridge that gap by bringing exposure on-chain. Instead of going through traditional private-market channels, eligible users can interact with tokenized assets through crypto wallets and DeFi infrastructure.
This does not remove risk. Newly listed equity can be volatile, thinly traded at first and subject to sharp price swings as the market finds its level. Tokenized exposure does not remove those risks, but it can give eligible users a new on-chain way to access the asset once trading goes live.
Trading SpaceX RWAs on 1inchSPCXx and SPCXon will be made available by issuers and consecutively surfaced by 1inch on the same day as the IPO, June 12, and eligible users will be able to trade it.
The process will be similar to other token swaps:
Open 1inch.Connect your wallet.Select the token you want to swap from.Select SPCXx or SPCXon.Review the quote, network fees and price impact.Confirm the transaction in your wallet.1inch helps users access liquidity across DeFi and find efficient swap routes. For RWAs, this is especially important because liquidity can be fragmented across issuers, chains and venues.
What to check before tradingBefore trading SPCXon or SPCXx, take a moment to review the basics.
First, check the issuer. SpaceX RWAs issued by Ondo and xStocks may have different legal structures, supported jurisdictions and user eligibility requirements.
Second, check liquidity. If liquidity is thin, the final execution price may differ from what you expect.
Third, check the token contract. Make sure you are interacting with the correct asset, not an imitation.
Finally, understand the risk. A tokenized asset may track or represent exposure to a real-world company, but it is still an on-chain instrument with its own structure, terms and restrictions.
How 1inch supports effective RWA tradingRWA markets need more than issuance. They also need execution.
If tokenized assets are hard to find, hard to route or hard to trade efficiently, they remain difficult to use. This is where DeFi infrastructure matters.
1inch helps connect users to available liquidity and supports efficient execution across DeFi. As more RWAs move on-chain, trading infrastructure becomes a key part of the user experience.
For SPCXon and SPCXx, this means eligible users can access tokenized exposure through a familiar DeFi flow instead of navigating fragmented venues manually.
A new step for on-chain marketsRWAs are expanding what can be traded on-chain.
The first wave of DeFi focused on crypto-native assets: tokens, stablecoins, lending markets and liquidity pools. The next wave brings more real-world exposure into the same environment.
SpaceX RWAs are part of that shift. They show how private-market exposure, issuer infrastructure and DeFi execution can start to meet on-chain.
Disclaimer 1:
This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.
Disclaimer 2:
Not available in the US, EU, UK and other restricted jurisdictions.
Open 1inch and explore available DeFi opportunities!
RWA trading often faces a simple problem: liquidity is not always where users need it. Intent-based routing can help by letting resolvers compete on asset sourcing, routing flexibility and execution quality.
These days, RWA issuers face one major challenge. Once assets are on-chain, how can they become easy to access and trade?
Public DEX liquidity for RWAs is often thin, fragmented and exposed to high price impact. At the same time, direct minting and redemption usually support only a limited set of assets, often USDC.
That creates friction for buyers and limits distribution for issuers.
Intent-based swap routing, like on 1inch, helps address that friction. Users express a simple intent — for example, “I want to buy this RWA with this asset at this rate” — while resolvers compete to fulfill it.
For RWA markets, this can make settlement more flexible. Resolvers can source inventory, route through supported assets or compete to offer better pricing without forcing every trade through shallow public pools.
Why RWA liquidity is differentMost DeFi tokens rely on open-market liquidity. If there is enough liquidity across DEXes, aggregators can route swaps through those pools.
RWAs work differently.
In many cases, the deepest source of liquidity is not a public DEX pool. It may come from issuer-linked flows, inventory held by market participants or secondary-market venues.
To mint or redeem an RWA directly, a participant usually has to use a limited set of supported assets, often USDC.
This creates an asset-path problem.
If an RWA can only be minted with USDC, a user holding WBTC, ETH or another token first has to swap into the required asset and then move through the issuer’s minting flow.
That makes RWA settlement more fragmented than a simple token swap.
How intent-based routing changes the flowIntent-based routing changes the user experience.
Instead of asking you to manage every step, 1inch intent-based swaps let you define the desired result. You choose the asset you want to sell, the RWA you want to receive and the acceptable rate.
After that, resolvers compete to execute the order.
A resolver can decide how to source the RWA. It may use available secondary-market liquidity. It may use its own inventory. It may route your asset into USDC or another supported asset first.
You do not need to manage these steps manually.
This is the key benefit of intent-based settlement: you focus on the outcome, while professional market participants compete on execution.
A simple exampleImagine you want to buy an RWA linked to NVIDIA using WBTC.
Without intent-based routing, you may have to:
swap WBTC into USDC or another supported asset;find a venue where the RWA is available;check whether liquidity is deep enough;manage price impact and timing across each step.With intent-based swaps, you can simply create an intent to buy that RWA with WBTC.
Resolvers can then compete to deliver the asset at the requested rate. One resolver may route through USDC. Another may use existing inventory. Another may find a better secondary-market path.
From your perspective, the process is a single intent-based swap.
Why resolvers matterResolvers are the execution layer in intent-based swaps.
For RWA trades, this role is especially important because resolvers can compete on liquidity sourcing and pricing. They can take on the operational risk of sourcing and holding RWA inventory, making it available on secondary markets where public DEX pools are too thin.
This means execution is not limited to one shallow pool.
If public liquidity is sufficient, a resolver can use it. If not, a resolver can use inventory or search for another route. If the user starts with WBTC, ETH or another asset, the resolver can find an efficient path into the asset needed for settlement.
The result is a smoother user experience and a more flexible settlement process.
Why this matters for larger RWA tradesThe efficiency gap becomes even clearer with larger trades.
If you want to move a large amount, for example $1 mln worth of WBTC into an RWA, a shallow public pool may create major price impact. A direct DEX route might not be practical.
With intent-based routing, resolvers can search for the best execution path. They can combine market liquidity, inventory and stablecoin routing where available.
This can make RWA settlement more efficient than relying only on fragmented open-market pools.
The role of the Dutch auctionIn intent-based swaps, resolvers compete through a Dutch auction mechanism.
You define the intent, and resolvers compete to fill it. This competition creates pressure to offer efficient execution because resolvers need to win the order while still managing their own costs and sourcing strategy.
For RWA trades, this model is useful because different resolvers may have different routes, inventory and pricing strategies.
One resolver may source the asset from the market. Another may use inventory. Another may find a better path from the user’s input token to the asset needed for settlement.
You do not need to know which path is used. You only need to decide whether the offered rate is acceptable.
RWA settlement needs more than simple routingRWA trading is not just another token swap.
It often involves limited secondary-market liquidity, supported settlement assets, inventory constraints and fragmented access across venues. Standard routing through public DEX pools can be insufficient.
Intent-based routing addresses this by adding an execution layer between the user and the complexity behind the trade.
This is why intent-based swap protocols are especially relevant for RWAs. They can make settlement more practical, more flexible and more efficient by letting resolvers compete to handle the hard part.
Intent-based routing can unlock better RWA accessRWAs bring traditional assets on-chain, but they also bring new execution challenges.
Liquidity may not be where users expect it to be. Supported assets may be limited. Public pools may be too shallow for efficient settlement. Larger trades may need better routing and deeper sourcing options.
Intent-based swaps help abstract that complexity. Users can express the trade they want, while resolvers compete to deliver the result.
For RWA markets to scale, this kind of intent-based execution can be critical.
Disclaimer 1:
This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.
Disclaimer 2:
Not available in the US, EU, UK and other restricted jurisdictions.
In this article you will learn how decentralized exchanges (DEXes) work, where they beat centralized exchanges (CEXes), and what can cost you money before you swap.
Since 2019, 1inch has routed swaps across roughly 100 DEXes on 13 chains. That experience shows one thing clearly: using a DEX is not just about “decentralization.” It is about execution. Price, liquidity, slippage, MEV, gas and routing all shape the final result.
A decentralized exchange, or DEX, is a non-custodial crypto trading venue where swaps are executed by smart contracts on-chain between crypto traders, not by a centralized company holding your funds such as Binance or Coinbase.
On the contrary, in a centralized exchange (CEX), you deposit assets into an account and trade inside that platform’s internal system. On a DEX, you connect a wallet, choose a trade and sign a transaction. The trade settles on-chain.
Unlike a centralized exchange, a DEX is entirely non-custodial. This changes how your trades settle:
Reduced Custody Risk: The exchange engine never holds or locks your funds.Wallet-to-Wallet Trading: Your assets stay in your personal wallet until you sign to approve a transaction.Automated Execution: An immutable smart contract handles the swap instantly based on predefined protocol rules.On a centralized exchange, you rely on the platform to custody assets, match orders, maintain balances and process withdrawals. On a DEX, the blockchain records the trade and the smart contract handles execution.
A DEX is also not simply “an app that lets you trade crypto.” The interface is only the front end. The important part is the smart contract behind it.
Three quick clarifications help avoid confusion:
A DEX is not an app you give your private keys to.A DEX is not the same as a centralized exchange with crypto branding.A DEX does not need a centralized order-matching server.Is Coinbase a decentralized exchange? No. Coinbase is a centralized exchange. Coinbase Wallet is a separate self-custody wallet, but Coinbase itself is not a DEX.
Is XRP a decentralized exchange? No. XRP is a crypto asset. The XRP Ledger has decentralized exchange functionality, but XRP itself is not a DEX.
For a trader moving off a CEX, the main shift is control. You gain more direct access to on-chain markets. You also take on more responsibility for execution, security and transaction settings.
How DEXes actually workA DEX uses smart contracts to execute trades.
A smart contract is code deployed on a blockchain. It defines how assets can move, who can interact with the protocol and what conditions must be met before a trade is completed.
When you swap on a DEX, the process usually looks like this:
You connect a self-custody wallet.You choose the token you want to sell.You choose the token you want to buy.You review the quote, fees and slippage settings.You sign the transaction.The smart contract executes the trade on-chain.That removes the CEX account layer. There is no exchange balance maintained in a private database. There is no withdrawal request. There is no centralized matching engine controlling settlement.
But DEXes still need liquidity.
That liquidity usually comes from one of two models: AMMs or orderbooks.
Automated Market Makers (AMM) DEXes
Most major spot DEXes use automated market makers, or AMMs.
An AMM does not rely on buyers and sellers placing matching orders. Instead, it uses liquidity pools. A liquidity pool is a smart contract that holds two or more assets and lets traders swap against those reserves.
Liquidity providers, or LPs, deposit assets into the pool. In return, they earn a share of trading fees. Academic work on AMMs describes this model as decentralized trading through liquidity pools where LPs supply assets and earn fees from trades.
The simplest AMM design uses a constant product formula:
Here is the basic idea:
ETH reserve * USDC reserve = constant
Before trade:
100 ETH * 300,000 USDC = 30,000,000
If you buy ETH from the pool:
ETH reserve falls
USDC reserve rises
The price of ETH goes up inside that pool
That is why large trades move the price. The pool must keep the equation balanced. The more you take from one side, the more expensive each next unit becomes.
Orderbook DEXes
Some DEXes use orderbooks.
An orderbook has bids and asks. Buyers place bids. Sellers place asks. The trade happens when prices match.
This model is closer to what you see on a CEX. It can work well for markets with deep liquidity and active market makers, especially derivatives and perpetuals.
The tradeoff is complexity. A fully on-chain orderbook can be expensive and slow on some networks because every order update may require blockchain interaction. Many orderbook DEXes therefore use hybrid designs, with some parts off-chain and settlement on-chain.
Liquidity pools in 90 seconds
Liquidity is the reason a DEX can execute your swap.
If you want to swap ETH for USDC, the protocol needs access to ETH and USDC liquidity. In an AMM, that liquidity sits in pools. In an orderbook, liquidity sits in open bids and asks.
For LPs, the incentive is fees. Traders pay swap fees. LPs receive a share of those fees based on their pool contribution.
For traders, the benefit is access. You do not need a centralized market maker to quote you a price. The protocol can quote a price based on available liquidity.
But liquidity is fragmented. One pool may offer a better rate than another. One chain may have better depth for a pair than another. One DEX may be cheaper for a small swap, while another may be better for a larger order.
How Liquidity Pools Work
A decentralized exchange can only execute a trade if it has an immediate supply of tokens available. For example, to swap ETH for USDC, the underlying protocol needs direct access to both ETH and USDC liquidity.
In an Automated Market Maker (AMM), these tokens are held inside smart contracts called liquidity pools. On an order book DEX, that supply exists instead as open buy and sell offers.
Liquidity providers (LP) fund these digital reserves by depositing their own crypto assets into the smart contract. In return for keeping the market funded, these providers earn a direct share of the trading fees generated by the platform. For traders, liquidity pools provide instant access to swaps without relying on a centralized broker; the protocol calculates the exchange rate mathematically based on the remaining token balance.
Because anyone can deploy a new pool across different blockchains, crypto liquidity is heavily scattered throughout the market. A single DEX might offer an excellent exchange rate for a small swap, while a completely different protocol has the deep reserves necessary to handle a much larger order safely. DEX aggregators eliminate the friction of scattered liquidity by automatically scanning multiple decentralized exchanges at once to route a trade through the most efficient swap.
Types of DEXesDEXes are not all the same. Different designs solve different execution problems.
AMM-based DEXes
AMM DEXes use liquidity pools and pricing curves.
Examples include Curve, PancakeSwap, SushiSwap and Uniswap.
Constant-product AMMs are the classic model. They work well for general token pairs. The formula keeps pool reserves balanced, but large trades can create price impact.
Concentrated-liquidity AMMs let LPs provide liquidity inside chosen price ranges. Uniswap v3 popularized this design, and research on Uniswap v3 describes how LPs can allocate liquidity to specific price intervals instead of the full possible price range.
Stableswap curves are designed for assets that should trade near the same value, such as stablecoin pairs. Curve is the best-known example of this category.
Orderbook DEXes
Orderbook DEXes use bids and asks.
Examples include dYdX and OpenBook.
Orderbooks can work better for advanced trading and derivatives markets. They can also support limit orders in a way that feels familiar to CEX traders.
The tradeoff is that orderbooks require active liquidity and fast updates. That can be harder to run fully on-chain.
Hybrid DEX models
Hybrid DEX designs combine features from multiple models.
Curve’s StableSwap design adjusts the AMM curve for similar assets. Uniswap v3 concentrates liquidity into price ranges. Other protocols combine off-chain order management with on-chain settlement.
The goal is usually the same: better capital efficiency and better execution.
DEX aggregators
A DEX aggregator searches across multiple DEXes to find a better route for your swap.
Examples include 1inch, CoW Swap, Matcha, Odos and ParaSwap.
Aggregators exist because liquidity is fragmented. No single DEX has the best price for every token, amount and chain.
A $100 swap and a $100,000 swap can need very different routes. A small trade may go through one pool. A larger trade may need to be split across several DEXes to reduce price impact.
1inch was built to solve this problem. The goal is not to make you manually check every venue. The goal is to make the route compete for you.
Cross-chain swap protocols
Cross-chain swap protocols move value between chains.
This is a separate but related category. A cross-chain swap can involve liquidity, messaging, bridges, solvers or intent-based execution.
For traders, the goal is simple: move from one asset on one chain to another asset on another chain without doing several manual steps.
Power trader concepts: the stuff that costs you moneyA DEX trade can look simple in the interface. The outcome depends on details that may not be obvious at first glance.
These are the concepts that matter most.
What is slippage?
Slippage is the difference between the expected price of a trade and the final executed price.
On a DEX, slippage happens because the market can move before your transaction confirms. It can also happen because your trade changes the pool price while it executes.
Slippage tolerance tells the protocol how much price movement you are willing to accept.
Set it too low, and your transaction may fail. Set it too high, and you may leave yourself exposed to worse execution or sandwich attacks.
As a rough practical range:
Blue-chip pairs often work around 0.1% to 0.5%.Less liquid tokens may need wider tolerance.Very low-cap tokens can require 5% to 10% or more.That does not mean high tolerance is good. It means thin liquidity is expensive.
Price impact vs slippage
Price impact is caused by your own trade moving the pool price.
Slippage is the difference between the quote and final execution.
They are related, but they are not the same.
A large trade can have high price impact even if it executes immediately. A small trade can suffer slippage if the market moves before confirmation.
MEV and sandwich attacks
MEV, or maximal extractable value, is value that can be captured by ordering, inserting or reordering blockchain transactions.
A sandwich attack is one common MEV strategy.
It usually works like this:
A bot sees your pending swap.The bot buys before you.Your trade executes at a worse price.The bot sells after you.The bot profits from your price movement.
Research on sandwich attacks shows the core tradeoff clearly: too little slippage tolerance can cause failed transactions, while too much tolerance can give predatory bots more room to extract value.
Some aggregators and intent-based systems try to reduce this risk through private routing, solver competition or execution designs that avoid exposing the full trade to the public mempool.
1inch intent-based swaps are designed around this problem. You sign an intent, and professional resolvers compete to execute it. That can help reduce MEV exposure and remove the need for you to manage every execution detail manually.
Gas fees
Gas is the cost of using a blockchain.
On a DEX, gas matters because every major action happens on-chain. Approvals, swaps, liquidity changes and some failed transactions can all cost gas.
Gas can change quickly. A trade that looks attractive at one moment can become less attractive if network fees spike.
Failed transactions
Failed transactions are part of DEX trading.
Common causes include:
Slippage tolerance was too low.Gas settings were too low.The pool price changed before confirmation.A token has transfer restrictions.The route became invalid.MEV or reordering affected execution.A failed transaction does not usually mean your entire trade amount is lost. But the gas spent on the failed transaction is usually not returned.
Before retrying, check what failed. Raising slippage blindly can make the next trade worse.
How to use a DEXThe easiest way to understand DEX trading is to walk through the flow.
Here is a practical example using the 1inch app as the interface.
1. Get a self-custody wallet
You need a wallet that lets you connect to DeFi apps.
Examples include browser wallets, mobile wallets and hardware wallets. 1inch Wallet is one option for mobile self-custody.
Your wallet holds your assets and signs transactions. The DEX does not take custody of your funds.
2. Fund your wallet
You need the asset you want to trade.
You also need the chain’s gas token. On Ethereum, that is ETH. On BNB Chain, that is BNB. On Polygon, that is POL.
You can fund your wallet by:
withdrawing from a CEX,using an onramp,bridging from another chain,receiving assets from another wallet.3. Connect to a DEX or aggregator
Go to the trading interface and connect your wallet.
An aggregator can search across many DEXes at once. That saves you from checking individual pools manually.
4. Set slippage and review the route
Choose the token you want to sell and the token you want to buy.
Then review:
expected receive amount,route,price impact,network fee,slippage tolerance,token addresses.Do not skip this step. Execution quality often lives in the details.
5. Sign and confirm
If it is your first time trading a token, you may need to approve it.
After approval, sign the swap.
Your wallet will show transaction details. Review them before confirming.
For most traders, an aggregator helps with steps 3 and 4 by checking many DEXes and routes at once. That becomes more important as trade size increases.
Risks and limitationsDEXes reduce some risks. But they also introduce others.
A good trader understands both.
Smart contract risk
DEXes run on smart contracts. Smart contracts can have bugs.
Audits reduce risk, but they do not make risk disappear. Even audited protocols have been exploited.
1inch has a long audit history and security-first culture, but no DeFi interface should be treated as risk-free.
Self-custody risk
Self-custody gives you control. It also gives you responsibility.
If you lose your seed phrase, you may lose access to your funds. If you sign a malicious transaction, there may be no support team that can reverse it.
Hardware wallets can reduce key-management risk. Good wallet hygiene matters.
Fake tokens and scams
DEXes are permissionless. That is a strength and a risk.
Anyone can deploy a token. Anyone can create a pool. A token name or ticker can be copied.
Before trading, verify the contract address from a trusted source such as the project’s official site, CoinGecko or CoinMarketCap. Do not rely on search results inside a DEX interface alone.
Lower fiat liquidity
A DEX does not usually let you cash out directly to a bank account.
You can swap into stablecoins on-chain. To move into fiat, you normally need a CEX, card provider, bank-connected onramp or offramp.
Regulatory and tax complexity
DEX trades can still be taxable.
A DEX may not send you the same type of tax form as a CEX. That does not remove your obligation to track trades and report taxable events where required. In the US, tax reporting rules for digital assets continue to evolve, and reporting obligations can differ between custodial and decentralized platforms.
Keep your own records.
DEX crypto FAQIs Coinbase a decentralized exchange?
No. Coinbase is a centralized exchange.
Coinbase Wallet is a separate self-custody wallet. A wallet can connect to DeFi, but that does not make the Coinbase exchange a DEX.
What is the best decentralized crypto exchange?
The right DEX depends on what you are trading.
An AMM may be better for a simple token swap. An orderbook DEX may be better for derivatives. An aggregator may be better when liquidity is split across many venues.
Do decentralized exchanges report to the IRS?
A DEX may not report in the same way as a centralized broker.
That does not mean DEX trades are tax-free. You are still responsible for reporting taxable transactions where required.
Are DEXes safe?
DEXes reduce custodial risk because you trade from your own wallet.
DEXes still carry smart contract risk, token risk, phishing risk and execution risk.
Can I cash out from a DEX?
Usually not directly to fiat.
A common path is to swap into a stablecoin, then use a CEX or offramp provider to move into a bank account.
What is the difference between a DEX and a DEX aggregator?
A DEX is a trading venue.
A DEX aggregator searches across multiple venues and routes your trade to improve execution.
Do DEXes charge fees?
Yes.
You may pay:
swap fees to liquidity providers,gas fees to the blockchain,price impact from the trade itself,execution costs embedded in some routes.Can I use a DEX with a hardware wallet?
Yes.
A hardware wallet can connect through supported wallet software and sign DEX transactions. This can help protect private keys, but you still need to review every transaction before signing.
The next step after understanding DEXesA DEX gives you direct access to on-chain liquidity.
That is powerful. It also means execution matters more. A trade can be affected by fragmented liquidity, slippage, price impact, gas and MEV.
This is why aggregators became a core part of DeFi trading. Once liquidity is spread across many venues, the question is no longer only “which DEX should I use?”
The better question is:
Where is the best route for this trade right now?
1inch helps answer that question by giving you access to major DEX liquidity from one interface.
Trade across major DEXes from one place on 1inch.com.
For banks, fintechs and asset managers, stablecoins offer something simple: digital money that can move on-chain, around the clock.
What’s the strongest use case for institutional crypto adoption, besides tokenized assets?
One answer is stablecoins. They are fixing an all too familiar issue: money movement that is still too slow, too expensive, too dependent on market hours and restricted by heterogeneous banking rules and regulations of different countries.
Stablecoins give institutions a cash-like asset that can move on-chain crossing any border, settle quickly and interact with tokenized markets. That makes them useful for payments, treasury operations, collateral movement and settlement.
No wonder major banks are now exploring stablecoins, tokenized deposits and tokenized cash. The signal is becoming hard to ignore.
Why stablecoins matter to institutionsStablecoins, such as USDC or USDT, are crypto assets designed to track the value of a fiat currency, usually the US dollar or euro.
Their role is practical. They give institutions a way to move cash-like value on blockchain rails without taking direct exposure to volatile crypto assets.
That matters because many financial processes still depend on systems that do not run continuously:
bank transfers can be slow and require many manual stepscross-border payments can be expensivesettlement can take timemoney transfers can be limited by operating hours and banking rules and regulations.Stablecoins address this issue. They can move 24/7 across the globe, settle quickly and interact with smart contracts and tokenized assets.
This makes them one of the most useful bridges between traditional finance and DeFi.
Banks are no longer just watchingIn 2026, major banks are no longer just observing stablecoins.
In Europe, the Qivalis euro stablecoin project has gained backing from 37 banks, including BNP Paribas, ING, UniCredit, ABN Amro and Rabobank, Financial Times reported. The project is designed as a euro-denominated stablecoin for use cases such as cross-border payments and atomic settlement.
In Canada, Bank of Montreal plans to launch a tokenized cash platform for institutional clients in the second half of 2026, pending regulatory approval. The platform is expected to support 24/7 secure fund transfers and tokenized settlement for areas such as margin trading, treasury operations and programmable finance.
Meanwhile, HSBC, the biggest lender in Europe and Hong Kong, recently said it plans to launch a Hong Kong dollar (HKD) denominated stablecoin in the second half of 2026.
These examples point in the same direction. Institutions are not only asking whether stablecoins can work. They are starting to build around them.
The institutional use case is not speculationFor retail crypto users, stablecoins often mean trading liquidity.
For institutions, the use case is broader.
Stablecoins can help with:
cross-border payments;treasury movement;collateral transfers;settlement for tokenized assets;liquidity management;on-chain trading and DeFi access.The institutional appeal is not about chasing crypto volatility. It is about making money movement faster, cheaper, more programmable and more available.
This is why stablecoins are especially relevant to tokenized assets. If stocks, bonds, funds and RWAs move on-chain, institutions also need a cash leg that can move on-chain.
You cannot build efficient tokenized markets if the asset leg runs on blockchain rails while the payment leg still depends on slow legacy systems.
Regulation is turning stablecoins into infrastructureStablecoins used to sit mostly outside traditional financial regulation. That is changing.
The very first crypto legislation passed in the US, Genius Act, was to regulate stablecoins. The EU’s MiCA framework gives stablecoin issuers clearer rules. Hong Kong has created a dedicated licensing regime. Canada is moving toward stablecoin regulation. Other jurisdictions are also designing frameworks for fiat-backed digital money.
This matters for institutions. Banks need clear rules before they can move at scale. Asset managers need certainty around settlement assets. Payment companies need defined compliance responsibilities.
Regulation does not remove all risk. Stablecoins still depend on reserves, redemption, issuer quality, custody, smart contracts and operational controls.
But regulated frameworks make institutional adoption easier to evaluate. They turn stablecoins from a crypto-native tool into something closer to financial market infrastructure.
What banks are really trying to solveThe stablecoin story is often described as a crypto story. But for banks, it is really a payments and settlement story.
Traditional finance works, but it has limits. It is fragmented across currencies, jurisdictions, intermediaries and operating hours. Moving money across borders can still be slow and expensive. Settlement can involve delays and counterparty risk.
Stablecoins offer a different model:
faster settlementliquidity available outside market hoursassets and payments in the same digital environmentprogrammable workflows.That is why stablecoins are one of the most credible crypto use cases for institutional adoption.
Where 1inch fitsBut stablecoins need more than issuance. They need infrastructure that makes them usable. Once stablecoins are on-chain, institutions need to move them efficiently across assets, venues and networks. They need routing, execution, pricing data and access to liquidity.
That is where 1inch Business comes in, providing seamless APIs for routing and executing stablecoin swaps across the DeFi ecosystem. For institutional teams, fintechs and builders, 1inch Business offers APIs that can help integrate swaps, routing, token data and transaction flows into their own products.
This matters because stablecoins become more useful when they are connected. A stablecoin that can move, trade and settle across DeFi is not just a token. It becomes part of a working financial layer.
The role of infrastructure is to make that movement simple enough for institutions to build on.
The next phase of crypto adoptionThe current phase of institutional crypto adoption looks nothing like a speculative boom. It’s about:
better settlementbetter treasury movementbetter liquidity accessbetter cross-border paymentbetter cash rails for tokenized assets.That is why stablecoins matter. They do not ask institutions to abandon traditional finance. They give traditional finance a way to use blockchain where it makes sense.
As banks in the US, Europe, Canada, Hong Kong and other markets move toward stablecoins and tokenized cash, the direction is clear: digital money is becoming part of institutional finance.
The next question is not whether stablecoins are useful. It is how quickly the infrastructure around them can make them easy to use.
Explore APIs offered on 1inch Business.
Disclaimer: This content is for general information purposes only and does not constitute financial, investment, tax or legal advice.
Tokenized equities are moving on-chain, but liquidity is still fragmented. For wallets, apps and trading platforms, aggregated routing can offer a more flexible path than direct DEX integration alone.
What if you want exposure to US stocks, but your money is already on-chain?
That question is becoming harder to ignore. Ondo has expanded tokenized access to US equities and ETFs for non-US investors through Ondo Global Markets, while Robinhood launched tokenized US stocks and ETFs for EU users in 2025.
The idea is simple: give investors blockchain-based exposure to traditional assets. The execution problem is more complex.
Where should a swap go? Which pool has enough liquidity? Which route gives the best result after price impact, gas and fees? For tokenized equities, these questions matter from day one.
Direct DEX integration gives controlDirect DEX integration means an app connects to one exchange or liquidity venue.
That can work well when liquidity is deep and predictable. It gives teams a clear integration path, direct control over UX and fewer moving parts.
But tokenized equities are still an emerging market. Liquidity may be spread across chains, issuers, pools and trading venues. A single DEX can only offer the liquidity available inside that venue.
For a user, that can mean worse execution. For an app, it can mean more maintenance as new tokenized equity markets appear.
Aggregated routing solves a different problemAggregated routing does not ask one venue for a price. It scans multiple liquidity sources and finds a better route for the swap.
That matters when markets are fragmented. Instead of forcing execution through one pool, an aggregator can split or route trades across available sources. The goal is simple: improve the final amount the user receives after all execution costs.
This is the core role of DEX aggregation. 1inch’s aggregation model is designed to search across liquidity sources and optimize routes, with Pathfinder able to split swaps across venues and factor gas costs into execution.
For tokenized equities, this model is especially relevant. Liquidity will not appear evenly everywhere. Some assets may be deep on one chain, thin on another and unavailable elsewhere. Aggregated routing helps apps adapt as the market changes.
Why tokenized equities need better executionTokenized equities are not just another token category. They connect DeFi rails with regulated financial assets, which means teams must consider compliance, market structure and user expectations.
Users will compare tokenized equities with traditional brokerage experiences. They will expect clear pricing, reliable execution and low friction.
That creates a practical challenge for DeFi apps:
direct DEX access can be simple, but narrow;aggregated routing is broader, but requires stronger infrastructure;tokenized equity liquidity may shift quickly as new issuers and venues enter the market.Academic research on DEX execution has also found that solver-based and auction-based systems can improve execution outcomes in certain trade size ranges, although results depend on liquidity profile and market structure.
The better path for appsDirect DEX integration is useful when an app needs a specific venue. Aggregated routing is better when an app needs execution quality across a changing market.
For tokenized equities, the second case is likely to become more important.
As more real-world assets move on-chain, liquidity will become both larger and more fragmented. Apps that rely on one venue may struggle to keep up. Apps that use aggregation can offer users broader access without rebuilding integrations for every new market.
That is where 1inch infrastructure fits. 1inch helps apps access deep DeFi liquidity through optimized routing, while keeping the user experience simple.
Tokenized equities may bring traditional assets on-chain. Aggregated routing can help make them usable.
Disclaimer 1:
This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.
Disclaimer 2:
Not available in the US, EU, UK and other restricted jurisdictions.
Explore 1inch Business to build with advanced DeFi routing infrastructure.
SpaceX RWAs attracted substantial interest when they were launched earlier this month. And a large share of Ondo’s SPCXon trading has been routed through 1inch.
Access is only part of the RWA story. Tokenized assets need markets. They need liquidity. And when liquidity is fragmented, they need execution infrastructure that can connect traders to the best available routes.
That is already visible with SPCXon, the SpaceX RWA issued by Ondo. In the first week since trading went live on June 12, 71% of SPCXon’s total trading volume of $9.87 mln was routed through 1inch, according to Ondo.
SpaceX RWAs moved from launch to liquidityEarlier, 1inch explained how eligible users can trade SpaceX RWAs, including SPCXon, issued by Ondo.
SpaceX RWAs are tokenized instruments that provide exposure through issuer-specific structures, with their own terms, restrictions and eligibility requirements. The initial market activity involving SPCXon proves that RWAs are no longer just being issued on-chain. They are being traded through DeFi infrastructure.
Why routing matters for RWAsRWA markets can be fragmented. Liquidity may sit across different venues, chains and pools. For traders, that can mean worse prices, higher price impact or more manual steps.
1inch helps solve this execution problem by finding efficient routes across available liquidity. Instead of checking separate venues manually, eligible users can access SPCXon through a familiar swap flow.
For new RWA markets, this matters. Better routing can help make tokenized assets easier to access and trade, while keeping the experience closer to standard DeFi swaps.
SPCXon shows the role of 1inch in tokenized marketsThe fact that a large proportion of SPCXon trading has been routed through 1inch shows how important execution infrastructure is becoming for RWAs.
Issuers bring assets on-chain. But traders still need a practical way to reach liquidity.
That is where aggregation matters. 1inch connects users to available liquidity and helps route trades efficiently across DeFi. As more real-world assets become tokenized, this layer can become even more important.
RWAs need more than issuanceThe RWA market is often discussed through the lens of tokenization. But issuance alone is not enough.
For tokenized assets to become useful, people need to be able to find them, evaluate them and trade them with clear execution conditions.
SPCXon is an early example of that next phase. It shows how tokenized exposure, issuer infrastructure and DeFi routing can work together in a live market.
A new market structure is taking shapeSpaceX RWAs have brought attention to tokenized private-market exposure. But the broader trend is larger than one asset.
More traditional assets are moving on-chain. As that happens, liquidity, routing and execution will become central to the user experience. 1inch is already helping power that layer.
Explore available DeFi opportunities on 1inch!
Disclaimer 1:
This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.
Disclaimer 2:
Not available in the US, EU, UK and other restricted jurisdictions.
If traditional finance got a blockchain makeover, DeFi protocols would inevitably be the result. Here, decentralized apps (DApps) and smart contracts reign supreme, offering you control over your financial future.
From staking your digital assets for crypto yield to conducting anonymous crypto swaps, this guide introduces you to the top DeFi protocols to keep an eye on in 2026.
In This Guide:
12 Top DeFi protocols in 2026 DeFi protocols comparedWhat are DeFi protocols?How do DeFi protocols work?Should you use DeFi protocols?Could DeFi replace traditional finance?Frequently asked questions12 Top DeFi protocols in 2026
1. dYdX
Best DeFi protocol for liquid staking
Token
dYdX
Token max supply
1,000,000,000 DYDX
Market cap
$1.499B
TVL
$401.81M
The dYdX protocol provides advanced financial instruments like perpetual and margin trading within the DeFi ecosystem. The leading exchange operates without KYC, allowing for anonymous, trustless trading. It supports perpetual and margin trading, alongside lending and borrowing, and offers competitive fee structures and gas-free trading experiences.
The platform provides lower collateralization levels compared to competitors, increasing accessibility. dYdX also utilizes StarkWare for increased efficiency and lower transaction fees and allows for community contributions and governance.
Notably, dYdX also transitioned to an independent blockchain within the Cosmos ecosystem, enhancing performance and furthering decentralization.
Pros
Advanced trading options No KYC required Low fees Layer-2 scalability Dynamic interest rates Interoperability with Cosmos Cons
Complex for beginners Dependent on Ethereum Limited spot trading New chain transition challenges Ecosystem adaptation required Trade features: Perpetual trading, margin trading, decentralized order book, layer-2 scalability, cross-margin capabilities.
Security features: Self-custodial security, third-party audits, secured by Ethereum protocol.
Platform and ecosystem features: No KYC, open-source code, integration with Cosmos ecosystem, decentralized governance, off-chain order matching.
2. PancakeSwap
Best DeFi protocol for cost-effective transactions
Token
CAKE
Token max supply
450,000,000 CAKE
Market cap
$974.4M
TVL
$2.224B
PancakeSwap is a top-tier DeFi protocol. It focuses on the Binance Smart Chain blockchain, but supports a total of eight networks, including Ethereum.
PancakeSwap’s native crypto is CAKE, which has a total supply of 450 million tokens. This decentralized exchange leverages an automated market maker (AMM) model, allowing for direct, wallet-to-wallet trades without intermediaries, enhancing user control and security.
Moreover, it offers a range of services beyond simple trades, such as yield farming, staking, and lotteries, enabling users to earn rewards in various ways. Its user-friendly interface makes it accessible for beginners, while its innovative features, like the zkBridge technology, ensure secure and efficient transactions across different blockchain networks.
PancakeSwap’s growth is underscored by its status as the first billion-dollar project on the Binance Smart Chain and its continual upgrades, such as the current PancakeSwap V3, demonstrating its commitment to improving functionality and user experience.
Pros
Intuitive interface High APY for liquidity providers (LPs) Supports staking and farming NFT marketplace Cons
No mobile app No native crypto wallet Trade features: Instant crypto trading, liquidity pools, asset bridging, perpetual trading, and cryptocurrency purchasing.
Game and NFT features: Gaming marketplace, prediction market, NFT marketplace for NFTs on BNB Chain.
DeFi and ecosystem engagement: Governance, initial farm offerings (IFOs), gauge voting and revenue sharing, and farm booster.
3. De.Fi
Best DeFi protocol for monitoring
Token
DEFI
Token max supply
1,000,000,000 DEFI
Market cap
n/a
TVL
n/a
De.Fi provides detailed smart contract analysis to detect potential vulnerabilities and assign security scores. It offers an extensive dashboard for monitoring wallet transactions and balances, alongside powerful investment tools for analyzing and controlling positions in DeFi protocols, NFT collections, and lending markets.
Additionally, De.Fi includes specialized security features like the De.Fi Shield and Scanner for thorough contract examination. It also comes with user-friendly transaction tools such as secure crypto sending and De.Fi Swap for easy cryptocurrency exchanges across various blockchains, making it a well-rounded solution for utilizing the DeFi space safely and effectively.
Uniswap is another leading decentralized exchange. The native token is UNI, which has a total supply of 1 billion tokens.
Governed by its users through the UNI token, it offers a community-driven experience, unlike centralized platforms. Uniswap’s liquidity pools facilitate secure and direct token swaps, ensuring users maintain complete control over their funds. Originally built on Ethereum, it now supports other Ethereum-compatible networks like Polygon and Optimism, offering lower transaction costs.
Uniswap’s simplicity makes it accessible for beginners while providing advanced features for experienced users. This is rare when it comes to DEXs, which can often be tricky to use and less straightforward than their CEX counterparts. Uniswap also boasts broad token availability and deep liquidity, reducing price impact on large trades.
Additionally, the DEX has integrated NFT trading, enhancing its offerings. With nearly 5 million unique wallet addresses and surpassing $1 trillion in trading volume, its popularity and reliability are evident.
Finally, Uniswap’s swap fees are competitive, especially when compared to centralized exchanges, and users can choose cheaper networks to avoid high Ethereum gas fees.
Game and NFT features: NFT marketplace, prediction market.
DeFi and ecosystem engagement: Governance, concentrated liquidity, transaction fee structure.
5. Curve Finance
Best DeFi protocol for stablecoins
Token
CRV
Token max supply
2,091,644,627 CRV
Market cap
$730.32M
TVL
$2.486B
Curve Finance is a leading decentralized exchange (DEX) on the Ethereum blockchain, specializing in the efficient trading of stablecoins and wrapped tokens like wBTC, renBTC, and sBTC. Founded by Michael Egorov, it has quickly risen to prominence, and is particularly famed for its innovative use of liquidity pools and automated market maker (AMM) systems. These allow users to earn high annual interest rates — over 300% in some pools — on deposited cryptocurrency.
The platform distinguishes itself with its unique bonding curve. This is optimized for stablecoins to reduce slippage, allowing significant trades with minimal price impact. This has positioned Curve as a vital component in the DeFi space, especially for those interested in liquidity mining and yield farming.
Curve Finance operates as a decentralized autonomous organization (DAO), with its governance token CRV enabling holders to vote on changes and proposals. This shift to a DAO structure allows Curve to operate with enhanced transparency and community-driven development. Despite its complexity and the potential for impermanent loss, Curve Finance offers significant opportunities for liquidity providers and traders, underlined by security measures including multiple code audits and bug bounties to safeguard user assets.
Pros
Specializes in stablecoins Reduced slippage Governed by DAO Multiple security audits Bug bounties for added safety Cons
Complex for beginners Focused mainly on stablecoins and wrapped tokens Reliance on Ethereum blockchain, leading to potential high gas fees Trade features: Stablecoin specialization, efficient liquidity pools, unique bonding curve, minimal slippage in trades.
Earning features: High annual interest rates from liquidity pools, rewards in CRV tokens, participation in yield farming.
DeFi and ecosystem engagement: Governance via CRV token, high total value locked (TVL), support for various wrapped tokens.
6. Balancer
Best DeFi protocol for multi-tokens pools
Token
BAL
Token max supply
62,244,253 BAL
Market cap
$268.21M
TVL
$1.242B
Balancer is a versatile and innovative DeFi platform that redefines the concept of decentralized exchanges (DEXs) by combining elements of automated market makers (AMMs) and index funds.
Unlike traditional DEXs — which typically focus on two-token liquidity pools — Balancer’s USP lies in its ability to maintain a balanced portfolio through automatic rebalancing, adjusting the pool’s asset allocations in response to market price changes.
Balancer supports three types of pools: public pools, where anyone can add liquidity and earn trading fees; private pools, where only the creator can contribute liquidity and set parameters; and smart pools, which are private pools with adjustable parameters controlled by a smart contract. This flexibility caters to a wide range of user preferences and risk tolerances.
Furthermore, Balancer’s architecture is designed to function on Ethereum and also on six additional blockchain networks, expanding its accessibility and interoperability within DeFi ecosystems. By providing a decentralized platform for multi-asset liquidity, Balancer contributes significantly to the efficiency of the cryptocurrency market.
Complex for beginners Limited on smaller chains Trade features: Multi-token pools, automated portfolio rebalancing, customizable pool types (public, private, smart), wide asset variety, minimal slippage through dynamic trading fees.
Earning features: Rewards in BAL tokens, high yield from liquidity provision, participation in liquidity mining, diversified income streams through various pool types.
DeFi and ecosystem engagement: Governance via BAL token, significant total value locked (TVL), interoperability across multiple blockchains, support for a variety of digital assets and wrapped tokens.
7. Summer.fi
Best DeFi protocol for services
Token
Summer.fi
Token max supply
N/A
Market cap
N/A
TVL
$5.345b
Summer.fi, initially known as Oasis.app and one of the earliest MakerDAO projects from 2016, has evolved significantly beyond its original scope.
After Maker became fully decentralized, Summer.fi emerged as a standalone platform, dedicated to establishing a highly trusted application for DeFi capital deployment.
It now transcends being merely an interface for the Maker Protocol. It aims to be the most secure place for engaging with DeFi, providing users with advanced automation features like stop-loss, auto-buy, and auto-sell, as well as strategies such as Constant Multiples for optimizing Vault performance. If your Vault’s collateralization ratio hits your Sell Trigger, Constant Multiple will execute.
Summer.fi prioritizes user experience, offering clear insights into positions, returns, and associated risks, backed by a comprehensive knowledge base reflecting community feedback.
Pros
Comprehensive DeFi services Advanced automation features, (stop-loss, take-profit, auto-buy, etc.) User-friendly interface Integration with multiple protocols (Aave and Maker) Cons
Complex for new users Limited to ERC-20 tokens Borrowing features: Flexible repayment schedules, diverse collateral types, integrated with multiple protocols like Aave and Ajna, protection against market volatility through the Oracle Security Module and constant updates from Chainlink.
Multiplying features: Increase or decrease collateral exposure in one transaction, use borrowed funds to buy more collateral, integration with liquid platforms and the 1inch DEX aggregator for best execution prices, dedicated interface for managing positions.
Earning features: Self-custody solutions for yield earning, compatibility with Aave and Maker protocols, increase yield from StETH, participate in the Dai Savings Rate for passive income.
Automation features: Stop-loss to prevent liquidations, take-profit for efficient exits, auto-buy and auto-sell for Vault management, Constant Multiple to maintain predefined exposure levels.
Integration and partnerships: Support for various wallets like MetaMask and Ledger, integration with the 1inch Network for efficient token swaps, launched on Optimism layer-2 for reduced transaction costs, Ajna Protocol integration for curated borrowing and lending pools.
8. Aave
Best DeFi protocol for liquidity
Token
AAVE
Token max supply
16,000,000 AAVE
Market cap
$1.711B
TVL
$10.564B
Aave (AAVE) is a pioneering entity in the DeFi sector. The comprehensive lending platform boasts a significant Total Value Locked (TVL), which surpasses $10 billion in crypto collateral.
Aave enables users to lend and borrow a wide array of tokens across multiple ecosystems, ensuring a versatile and inclusive financial experience.
The platform’s latest iteration, Aave V3, expands its reach beyond Ethereum to include 10 different blockchain networks, further solidifying its position as a key player in DeFi by enhancing accessibility and providing a range of options for its diverse user base.
Pros
High TVL Wide range of tokens Multi-chain accessibility Flash loans availability Governance via AAVE token Cons
Complexity for beginners High gas fees on Ethereum Risk of liquidation Trade features: Flash loans, real-time interest accrual, stable and variable interest rates, Ethereum network integration, multi-asset collateral support.
Earning features: aTokens for deposit interest, decentralized lending and borrowing, yield optimization strategies, liquidity mining.
Security features: Over-collateralization of loans, smart contract audits, safety module for risk mitigation, bug bounties for platform integrity.
Platform and ecosystem features: Governance via AAVE tokens, layer-2 solutions for reduced fees, decentralized autonomous organization (DAO) structure, no KYC requirements, multi-chain accessibility.
9. MakerDAO
Best DeFi protocol for generating a stablecoin
Token
MKR
Token max supply
1,005,577 MKR
Market cap
$2.686B
TVL
$7B
MakerDAO is a pioneering DeFi platform that has revolutionized the way users engage with digital assets. The platform provides a decentralized borrowing and lending system with its stablecoin, DAI, at the core.
Built on the Ethereum blockchain, it allows users to leverage a variety of cryptocurrencies as collateral to generate DAI, maintaining stability through rigorous governance by MKR token holders.
The platform distinguishes itself with features like over-collateralization to ensure loan security, and a dual-rate model offering users the choice between stable and variable interest rates. However, users must navigate complexities such as liquidation risks and market volatility.
As MakerDAO evolves, it continues to solidify its status as a cornerstone of the DeFi landscape with the introduction of upgrades like V3 and the addition of the GHO stablecoin — balancing user empowerment with the intricate dynamics of decentralized finance.
Pros
Decentralized lending DAI stability Ethereum-based Governance by MKR Over-collateralization Variable interest rates Cons
Complexity High gas fees Liquidation risks Trade features: Flash loans, stable and variable interest rates, real-time aTokens, multi-currency collateral, governance-driven updates.
Earning features: Interest on deposits, participation in governance, yield farming opportunities, dynamic interest rates.
Security features: Over-collateralization, liquidation mechanisms, community governance for risk management, security modules for asset protection.
Platform and ecosystem features: Decentralized borrowing and lending, Ethereum-based, MKR token for governance, integration with multiple crypto assets, open-source development, Maker Vaults for asset management.
10. Compound Finance
Best DeFi protocol for staking
Token
COMP
Token max supply
10,000,000 COMP
Market cap
$487.27M
TVL
$2.668B
Compound Finance is a prominent decentralized lending platform operating on the Ethereum blockchain, known for pioneering the DeFi lending space.
Established by Robert Leshner and Geoffrey Hayes in 2018, Compound simplifies the process of borrowing and lending cryptocurrencies without intermediaries, allowing over $2 billion in assets to be locked on its platform.
Unique for its innovations, such as yield farming and governance through COMP tokens, the platform aims to provide financial inclusion, eliminating traditional transaction minimums and credit checks.
While offering competitive returns through real-time interest rates, users engaging with Compound and its governance token, COMP, must be cautious of market volatility and conduct in-depth research prior to investment.
Pros
Decentralized borrowing and lending No transaction minimums User-friendly interface Supports multiple ERC-20 assets Yield farming opportunities Cons
Market volatility risks Requires over-collateralization Complexity for new users High gas fees on Ethereum Trade features: Real-time interest rate adjustments, supports diverse ERC-20 tokens, and a user-centric lending and borrowing system.
Earning features: Yield farming with COMP tokens, competitive APR for lenders, dynamic interest rates based on market conditions.
Security features: Extensive security audits (Trail of Bits, OpenZeppelin), economic risk analysis by Gauntlet, transparent and verifiable contracts.
DeFi and ecosystem engagement: Decentralized governance with COMP tokens, financial inclusion without traditional verifications, continuous platform innovation and updates.
11. Lido
Best DeFi protocol for ETH staking
Token
LDO
Token max supply
1,000,000,000 LDO
Market cap
$2.215B
TVL
$34.445B
Lido Finance is a DeFi staking protocol offering user-friendly, semi-custodial staking services across multiple cryptocurrencies. Known for its simple interface and decentralized structure, Lido allows users to stake their assets and receive liquid staking tokens, such as stETH, which can be utilized in the broader DeFi ecosystem for yield farming.
Supported by major players in DeFi and endorsed for its reasonable fees and rewarding referral program, Lido maximizes decentralization through its governance token, LDO, allowing stakeholders to partake in decision-making. While Lido streamlines the staking process, users should consider the semi-custodial nature, the staking rewards fees, and potential tax implications associated with rewards.
Semi-custodial service Staking rewards fees Potential tax implications Staking features: Easy and unrestricted staking, maximized earning potential, liquid staking tokens for yield farming.
Earning features: Daily staking rewards, assets used as collateral for lending and yield farming, participation in governance for reward optimization.
Security features: Smart contracts audited by Quantstamp and Sigma Prime, semi-custodial nature maintains user control.
DeFi and ecosystem engagement: Governance via LDO tokens, broad DeFi integration, supports multiple blockchains including Ethereum.
DeFi protocols comparedProtocolTypeTVLTokenNo. of blockchains supportedPancakeSwapDEX$2.224BCAKE9UniswapDEX$5.543BUNI8CurveDEX$2.486BCRV14BalancerDEX$1.242BBAL8Summer.fiDEX$5.345bsummer.fi4AaveLending$10.564BAAVE12MakerDAOLending$7BMKR1CompoundLending$2.668BCOMP4dYdXDEX$401.81MdYdX1LidoStaking$34.445BLDO5De.FiTracker and walletn/aDEFI15What are DeFi protocols?DeFi protocols are sets of rules, procedures, and codes that govern decentralized finance (DeFi) systems, enabling users to engage in activities such as trading, lending, and staking tokens within blockchain ecosystems.
DeFi represents a paradigm shift leveraging blockchain technology, primarily Ethereum, to cultivate an open, permissionless, and borderless financial ecosystem. Unlike traditional systems, developers write smart contracts to deploy DeFi protocols that enable peer-to-peer interactions without intermediaries. By adhering to the same set of rules, DeFi protocols ensure a standardized experience for all participants.
An example of a DeFi protocol is MakerDAO. The popular DeFi lending platform allows users to borrow against their crypto assets by locking them in exchange for a stablecoin, DAI, thus offering more predictable repayment terms despite the volatility of crypto markets.
Other protocols allow you to earn a passive income by generating yield from your staked assets. One popular example is the Lido protocol, which allows you to earn on stETH. Platforms like Lido aim to offer the highest APY on crypto staking, allowing users to maximize returns on their staked assets within the Ethereum ecosystem.
The total value locked (TVL) is often used as a metric to gauge a protocol’s adoption and utility, with MakerDAO being one of the largest by TVL, highlighting its significant role in DeFi.
In 2026, new and more efficient technologies are being developed. For instance, some protocols incorporate asynchronous smart contracts, which allow transactions and agreements to be executed without needing all parties to be present or online simultaneously. This helps streamline operations within networks like Ethereum.
According to DeFiLlama, the top protocol categories are lending, DEXs, bridges, CDP (protocols that mint their own stablecoin using collateralized lending), and restaking.
Protocol categories: DeFiLlamaWhy do you need DeFi protocols?DeFi allows decentralized apps (DApps) and platforms to provide services like crypto lending and crypto yield earning through staking. Users can participate in AMM (automated market maker) systems to improve liquidity.
These features offer a fertile ground for startups to innovate beyond conventional financial products, fostering rapid experimentation and potential disruption. The global accessibility facilitated by DeFi platforms makes them a significant tool for financial inclusion, allowing startups to reach a worldwide audience.
The interoperability among various DeFi protocols enhances this further, enabling seamless integration of services like web3 gaming and metaverse tokens, broadening the scope of what blockchain startups can achieve.
The total value locked (TVL) in DeFi platforms serves as a metric of trust and utility, indicating the number of cryptocurrencies staked, lent, or committed to liquidity pools, highlighting the ecosystem’s growth and stability.
By eliminating intermediaries, DeFi significantly lowers transaction costs, making it an attractive model for startups, especially in crypto lending and yield generation. Instead of being worried about your credit score, you can apply for a crypto loan with fewer restrictions than in TradFi. This reduction in costs, combined with the potential for high crypto yield through mechanisms like staking, positions DeFi as an increasingly popular option for both entrepreneurs and investors in the crypto market.
How do DeFi protocols work?DeFi protocols function by leveraging blockchain technology. While most of them are based on Ethereum, some may also support other networks. At the heart of these services are smart contracts, self-executing contracts with the terms of the agreement directly written into code, which facilitate, verify, and enforce the negotiation or performance of a contract.
DeFi, however, requires thorough research and understanding of several factors, including security, liquidity, and the platform’s governance structure. It’s important to assess the user experience, the degree of interoperability with other DApps and blockchain systems, and the level of community involvement in decision-making processes.
1. Decentralized apps (DApps)Users can engage with various DeFi platforms or DApps to access a wide range of financial services.
One common way to participate is through crypto lending on platforms. Protocols such as Aave or Compound allow you to deposit cryptocurrencies to earn interest. The earnings are measured as Annual Percentage Yield (APY), which is a volatile percentage that corresponds to the market’s demands.
2. Liquidity miningAnother popular DeFi activity is liquidity mining. You can provide liquidity to decentralized exchanges (DEXs) by depositing your assets into liquidity pools. This deposit is usually made for a pair of assets, such as ETH-USDT, but it can be anything else.
In return, you earn rewards, often in the platform’s native tokens. This process is critical for ensuring there is enough market liquidity for trading and is facilitated by AMMs, algorithms used by DEXs to determine the price of tokens and facilitate trades.
3. Swaps (trading)Trading on DEXs is another key function of DeFi protocols. These platforms allow users to trade cryptocurrencies directly with others in a more private and accessible manner than on centralized exchanges.
This not only supports the decentralized ethos of blockchain but also contributes to the Total Value Locked (TVL).
Should you use DeFi protocols?Pros Earn money: You can make your crypto work for you. Put your assets in DeFi platforms to earn interest or rewards. Trade easily: Swap cryptocurrencies directly with others. No need for a middleman. More control: You’re in charge of your money. No bank or institution can block your transactions. Open to everyone: Anyone with an internet connection can join. It’s global and inclusive. Transparent: Everything is recorded on the blockchain. You can see all transactions. New opportunities: Explore new financial services like crypto lending or web3 gaming. Cons Risky: Crypto values can change fast. Your investments can shrink quickly. Complicated: Some DeFi stuff is hard to understand. It’s not always beginner-friendly. Security issues: Hacks happen. If a DeFi platform gets attacked, you might lose your money. No customer support: If you have a problem, there’s no customer service to call. Research needed: You need to do your homework before investing. Not all platforms are safe. High fees: Sometimes, you’ll pay a lot to make transactions, especially when the network is busy. Could DeFi replace traditional finance?Decentralized finance has the potential to usurp traditional institutions, specifically TradFi. Decentralized finance enables users to transact securely, anonymously, and efficiently and is thus likely to gain popularity as web3 and crypto adoption grows. From crypto lending to staking to market makers, DeFi is exciting but also risky.
Do not interact with any DeFi protocols until you have developed a solid plan and are entirely comfortable with the mechanisms of the platform. Always be aware of the potential for losses, and never invest more than you can afford to lose.
Frequently asked questions What is the most popular DeFi protocol? The most popular DeFi protocol is often considered to be MakerDAO. It frequently leads in terms of Total Value Locked (TVL) and has a wide usage across the DeFi ecosystem. MakerDAO’s platform revolves around the generation of DAI, a stablecoin pegged to the U.S. dollar, and enables decentralized borrowing and saving. Its popularity stems from its innovative approach to maintaining currency stability and providing a decentralized credit service.
What are the top five DeFi tokens? The top five DeFi tokens typically include Maker (MKR), Aave (AAVE), Compound (COMP), Uniswap (UNI), and PancakeSwap (CAKE), based on their market capitalization and impact on the DeFi space. These tokens facilitate governance of their respective platforms, offering holders voting rights on decisions and upgrades. They are integral to the operations of these platforms, from lending and borrowing to providing liquidity and facilitating decentralized trading.
What is TVL in DeFi protocols? Total Value Locked (TVL) in DeFi protocols refers to the total amount of assets currently being staked, lent, or deposited within a DeFi protocol’s smart contracts. It serves as a metric to gauge the overall health and growth of the DeFi market, indicating how much money is actively used in these decentralized financial services. A higher TVL suggests greater user trust and utility of the DeFi ecosystem.
How many DeFi protocols are there? The number of DeFi protocols is constantly growing as the space evolves and new projects are launched. There are hundreds of DeFi protocols across various blockchains, catering to different aspects of decentralized finance such as lending, borrowing, trading, and liquidity provision. The exact number can vary daily due to the dynamic nature of the crypto and DeFi industries.
How many DeFi protocols are there? The number of DeFi protocols is constantly growing as the space evolves and new projects are launched. There are hundreds of DeFi protocols across various blockchains, catering to different aspects of decentralized finance such as lending, borrowing, trading, and liquidity provision. The exact number can vary daily due to the dynamic nature of the crypto and DeFi industries.
Is TVL a good metric? TVL is a good metric for understanding the scale and usage of a DeFi protocol, as it reflects the total capital committed by users. However, it should not be the sole metric for assessing a protocol’s value or success, as it does not account for risks, decentralization level, or liquidity. It’s best used in combination with other factors like user growth, transaction volume, and protocol governance for a comprehensive evaluation.
What is a good FDV TVL ratio? A good FDV (Fully Diluted Valuation) to TVL (Total Value Locked) ratio for a DeFi project is typically below one, indicating that the project’s market valuation is not excessively higher than the value of assets locked in the protocol. Lower FDV/TVL ratios suggest that the protocol is undervalued or efficiently using its capital, which can be attractive to investors. However, this ratio should be considered alongside other metrics and project fundamentals for a complete analysis.
What is the TVL formula? The TVL formula in DeFi protocols calculates the total value of all assets deposited in the protocol’s smart contracts, which can include cryptocurrencies, stablecoins, and other tokens. It aggregates the value of these assets, often converting them to a common currency like USD for a standardized measure. The formula is the sum of the value of each type of asset multiplied by its current market price.
How to calculate FDV? The Fully Diluted Valuation (FDV) is calculated by taking the total supply of a token (both circulating and non-circulating) and multiplying it by the current price of the token. This gives an idea of what the market cap would be if all tokens were in circulation and trading at the current price. It’s an important metric for understanding the potential market size and investment risk of a cryptocurrency or DeFi project.
A whale who netted $13.68 million from shorting 16 altcoins is suspected of selling 6,855.13 ETH.
According to on-chain analyst Ai Yi (@ai_9684xtpa), the Hyperliquid whale who once shorted 16 altcoins and pocketed $13.68 million in profits has started selling ETH. Five hours ago, during the market rebound, he deposited 6,855.13 ETH tokens worth $11.02 million into Binance, an action suspected to be for sale. These tokens were accumulated between February and March this year at an average price of $1,991 each; selling them would incur a loss of $2.625 million.
3 minutes ago
Strategy’s unrealized losses on its Bitcoin holdings have widened to $12.6 billion.
According to HTX market data, Bitcoin has dropped 3.13% over the past 24 hours, currently trading at $60,775. Strategy’s Bitcoin holdings are currently facing an unrealized loss of 19.7%, amounting to roughly $12.6 billion. As of June 21, Strategy holds a total of 847,363 Bitcoins, with a total cost of $64.1 billion and an average holding cost of $75,651 per Bitcoin.
3 minutes ago
Top 1 On-Chain Liquidation: ETH Bull Whale Hit With 4 Consecutive Forced Liquidations, $14.11 Million in Positions Liquidated
According to Hyperinsight monitoring, today’s largest liquidation on the Hyperliquid platform involved a high-leverage Ethereum (ETH) long whale. The address opened a long position yesterday when ETH was trading at roughly $1,661, and immediately incurred losses after entry. Triggered by ETH’s short-term dip below $1,600 in the early hours of today, the whale faced four consecutive liquidations, resulting in the forced closure of a total of 8,734 ETH positions valued at approximately $14.11 million. The address now holds less than $150,000 in remaining funds, with all positions fully cleared. Address: 0x1cb0b187c14a8c0fb36ca0dcbb775dcc7f02b408
3 minutes ago
A certain on-chain address opened long positions in BTC, ETH, and silver, and purchased $10.699 million worth of BTC and ETH spot.
According to on-chain analyst Ai Yi (@ai_9684xtpa)’s monitoring, address 0x960…3f0fc simultaneously went long on both futures and spot positions this early morning, opening long positions of 102.55 BTC, 954.38 ETH, and 8,790 silver units, with total position value around $8.29 million. It also purchased spot BTC and ETH worth approximately $10.699 million. Its current take-profit levels are set at $63,000 for BTC and $1,650 for ETH.
3 minutes ago
A whale that reaped over $23.77 million in profits from the Basic Attention Token (BAT) ICO has reawakened after six years of dormancy, offloading 12,600 ETH in the past two days.
According to monitoring by EmberCN, a whale address that participated in the BAT ICO in 2017 and generated approximately $23.77 million in total profits has started selling ETH recently after six years of inactivity. Over the past two days, the address has sold 12,586 ETH, receiving 20.59 million USDS in exchange, at an average selling price of roughly $1,636. The whale invested 17,789 ETH in the BAT ICO in May 2017, acquiring around 113.8 million BAT. It then sold BAT gradually over approximately two and a half years at an average price of $0.245, netting about $23.77 million in profits, with some of the BAT converted into 27,586 ETH. Since then, the ETH has remained inactive for a long time until it resumed reducing its holdings recently. Currently, the address still holds around 15,000 ETH, valued at approximately $24.29 million.
3 minutes ago
Japanese storage firm Kioxia plans to list American Depositary Receipts (ADRs) in the U.S. in April or May next year.
Market news: Japanese storage chip maker Kioxia plans to list its American Depositary Receipts (ADRs) in the U.S. in April or May next year. (Jinshi)
Online Marathon 2024 will take place from June 20 to 22. The event is part of the Ukrainian Blockchain Week event. Among the participants are representatives of Hacken, Near Protocol, Binance, Solana Foundation, 1inch, Polkastarter, Consensys and many other guests. The Online Marathon 2024 event, which Incrypted team is organizing as part of Ukrainian Blockchain Week, will take place from June 20 to 22, 2024.
This online conference will bring together leading representatives of the crypto industry.
The event will provide an opportunity to become a part of a dynamic community that promotes cutting-edge ideas to the masses and contributes to the development of Web3-space both in Ukraine and around the world.
Among the speakers of one of the main crypto events of this summer are representatives of the following projects, organizations and companies:
Dmitry Budorin — co-founder and CEO of blockchain security auditor Hacken; Jan Ketelers — Marketing Director of crowdfunding platform Polkastarter; Ilya Polosukhin — co-founder of the Near Protocol project; Kristina Lucrezia Corner — Editor-at-large & Cointelegraph ambassador; Derek Rein — CTO of WalletConnect Protocol and many others. Speakers will share their professional experience, ideas and vision regarding the Web3 space.
In addition, at Incrypted Online Marathon 2024, representatives of Binance exchange, Solana Foundation and 1inch aggregator will speak. They will be accompanied by experts from SafePal, Filecoin Foundation, KELP, Gnosis Chain, Consensys and many other projects.
Online Marathon 2024 schedule:
20-21/06/2024 (13:00-17:00) — panel discussion days; 22/06/2024 (11:00-18:00) — the day of individual presentations. Ukrainian Blockchain Week is a series of large-scale events that will be held from June 17 to 23, 2024. As part of the event, everyone will be able to participate in the conference, meetups and the previously mentioned online marathon.
Each event of Ukrainian Blockchain Week is a unique opportunity to network with industry leaders, gain new knowledge and communicate with Web3 innovators.
Incrypted team is confident that guests and participants of the event will experience a full immersion in the current trends of the crypto-industry and advanced solutions of the world of blockchain technologies.
Stay tuned for more updates from Incrypted. We’ll soon announce more speakers and provide new details about Ukrainian Blockchain Week 2024.
About Incrypted Online Marathon 2024:
The Incrypted Online Marathon is a premier event during Ukrainian Blockchain Week, featuring leading Web3 innovators from around the globe. This unique online conference aims to foster a robust crypto culture in Ukraine by showcasing the finest global practices in building successful crypto companies. Its mission is to elevate the local community and projects, providing them with the knowledge and inspiration needed to reach new heights.
Users can join The Incrypted Online Marathon and become part of a dynamic community propelling the Web3 space forward: https://incrypted.events/incrypted-conference-2024/online-marathon/
A prominent analytics-providing platform, Phoenix Group, has recently provided a list of top DeFi projects based on weekly ETH burning. The list containing the ETH-burning DeFi projects includes Uniswap, 1inch, USD Coin, 0x Protocol, Metamask, Gnosis, Pendle, Kyber Network, Aave, and ParaSwap. The analytics provider provided the details of these projects in its latest X post.
Uniswap Leads the DeFi Projects Based on Weekly ETH Burning As per the data from Phoenix Group, Uniswap has dominated the DeFi sphere in terms of 7-day ETH burning. In this respect, Uniswap has reportedly burned 278.1 ETH. This figure equals a value of nearly $737.8K. Following that, 1inch has taken the 2nd position. The popular DeFi project has burned up to 31.3 ETH with a value of approximately $83.0K. Additionally, USD Coin has gained the 3rd spot with almost 30.0K ETH tokens burned.
These tokens have a value of nearly $79.6K. After that, 0x Protocol stands in the 4th place. It saw weekly $279 ETH coins burned. This denotes a value of almost $74.0K. Moreover, Metamask occupies the 5th spot with 27.1 ETH burned, equaling up to $71.9K. It precedes Gnosis which has recorded a token burn comprising $12.4 ETH. This figure accounts for $32.9K.
ParaSwap Bottoms the List with 2.9 ETH Burned The list places Pendle in the 7th position with 11.4 ETH burned. These tokens’ value is approximately $30.2K. Kyber Network secures the 8th spot with 8.1 ETH burned, equaling $21.5K. Aave’s 7-day token burn includes 5.8 ETH with a $15.4K worth. ParaSwap gets the last place on the list with 2.9 ETH burned, accounting for $7.7K.
AUTHOR
Umair Younas is a cryptocurrency-related content writer linked with this work since 2019. Here, at Blockchainreporter, he serves as a news and article writer. He is a crypto, blockchain, NFTs, DeFi, and FinTech enthusiast. He has strong command over writing authentic reviews about brokers and exchanges and he has collaborated with our education team to write educational content as well. He has a dream to raise awareness among people about digital currencies. His works are well-researched and brimmed with information hence they provide fresh insights. Stay tuned to his posts if you want to stay up-to-date with the crypto-verse.
A group of digital asset industry leaders have launched the Digital Assets Association (DAA) in Singapore.
The non-profit organization aims to bridge the gap between traditional finance and the potential of tokenized real-world assets (RWA) by bringing together financial institutions, fintechs, technology providers, and legal and regulatory experts.
Its committee comprises early-stage innovative companies, financial players, and service providers including:
Henry Zhang, Founder & CEO of DigiFTChia Hock Lai, CEO of OnfetDanny Chong, CEO of TranchessDaniel Lee, Head of Web3, Banking CircleSteven Hu, Head of Digital Assets, Trade & Working Capital, Standard CharteredChang Tze Ching, CEO of Bright Point International Digital Assets.Digital Assets Association Exco. (From left to right) Chia Hock Lai, CEO, Onfet; Danny Chong, CEO, Tranchess; Daniel Lee, Head of Web3, Banking Circle; Tze Ching Chang, CEO, Bright Point International Digital Assets; Henry Zhang, Founder & CEO, DigiFT; and Dr Steven Hu, Head of Digital Assets, Trade & Working Capital, Standard CharteredDAA's inception was spearheaded by the leaders of DigiFT, Onfet, and Tranchess. DigiFT is a regulated on-chain exchange for RWA. Onfet is a blockchain-based tech firm focusing on operational efficiencies. Tranchess is a tokenized asset management and derivatives tracking protocol.
Singapore’s DigiFT Wins MAS Regulatory Approval
DigiFT has graduated from the MAS FinTech Regulatory Sandbox to becoming a Capital Markets Services licence holder and a Recognised Market Operator
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It aims to share knowledge and best practices, develop industry standards, advocate for responsible adoption and empower future leaders.
Tokenization is expected to grow by a factor of 80x in private markets, reaching up to almost US$4 trillion in value by 2030, according to Citi.
A new report by Seedly and Coinbase has revealed that more than 1 in 2 Singaporeans own cryptocurrency.
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