1inch Network continues to work on solutions that allow users to get the most out of their assets. Today they are launching a new investment product, 1inch Earn, which offers higher APY to liquidity providers.
The main difference between 1inch Earn and conventional liquidity pools is the more efficient use of capital based on AMM. In standard pools, all liquidity is distributed evenly, which is why most of it is never used.
At the moment, the USDC/USDT pool has already been launched on the Ethereum network. In the future, the developers promise to add more different pools, including those without stablecoins.
The launch of 1inch Earn should be a big step and solve several important tasks:
- Improve the resilience of the entire network;
- strengthen decentralization;
become a profitable income tool for users.
By In essence, 1inch Earn is a set of liquidity pools operating on a model similar to Uniswap V3 range orders and optimized for stablecoins. Earnings come from a commission for swap transactions in the pool.
At the time of launch, user income from 1inch Earn will be 5-10% APY, and in the future it will depend on market conditions. Swaps in the pool will be made by arbitrage traders, algorithmic trading bots and individual 1inch users as the 1inch Earn pool is integrated into the 1inch Pathfinder algorithm as a source of liquidity, which will provide good liquidity at any time.
Details A guide to using 1inch Earn can be found in the 1inch Help Center.