BSC Tutorial: Trading on 1inch Using the Binance Smart Chain Network

1inch is the leading DEX aggregator on the BSC and Ethereum networks. This aggregator boasts the highest number of transactions because of its unique pathfinder algorithm and its CHI token system.

By
BSCNews
on
March 6, 2021
Category:
Tutorials

Introduction

In the past year, loads of users have entered the DeFi space. Recently, the Binance Smart Chain (BSC) has experienced parabolic growth adding to the rapidly expanding sector of crypto. To stay at the forefront of innovation 1inch exchange has launched their token and DEX aggregator services on the BSC. 


What is 1inch?

1inch happens to be the leading DEX aggregator offering better and lower rates for cryptocurrency swaps. In turn, 1inch provides users with better and faster transactions compared to any other exchange. Trading on 1inch utilizes liquidity across multiple exchanges to reduce slippage and provide users the best price available. All transactions carried out on 1inch are done from the user's custodial wallet through smart contracts. This ensures users are still receiving the fruits of decentralization in a secure and efficient manner.


Step 1: Connecting Wallet to 1inch

Go to  https://1inch.exchange/

Click on the connect wallet button on the page.

Accept the terms of service, legacy disclosure, and privacy.

Then select your wallet and connect.

Remember to read this if you have not connected your MetaMask wallet to the Binance Smart Chain: https://www.bsc.news/post/connecting-metamask-wallet-to-the-binance-smart-chain.

1inch 1.png


Step 2: Selecting Tokens

Select a coin available in your wallet and select the coin you want to swap to. You can sort between the maximum returns and lowest gas fee using the pathfinder algorithm.

The pathfinder algorithm selects the best routes for the swap utilizing multiple DEX’s. The multiple liquidity pools provide you the best rate when you pick the maximum return. Similarly, when selecting the lowest gas cost the pathfinder ensures gas fees are minimized.


Step 3: Advanced Settings (Optional)

On the exchange section of the 1inch swap, select the settings button at the top right. When the settings open, there are several options here; activating the chi button enables the use of CHI gas tokens. CHI tokens reduce the fee cost by 43%, but you'll need a minimum balance of 5 CHI for this to work.

Also, there's a comparison table that shows a routing chart, auto-fill options, and you adjust slippage tolerance. These settings allow users to take full control of their decentralized token swaps.

1 inch settings.png


Step 4: Approving and Swapping 

After selecting desired options such as swap routes and fee payments, users must “unlock their tokens” This step approves the 1inch smart contracts, allowing the swap function to be performed. Once approved, a swap tokens selection will appear where the “Unlock Token” button was initially. Select the “Swap Token” button to then confirm and complete the transaction.


Concluding Thoughts

1inch is the leading DEX aggregator on the BSC and Ethereum networks. This aggregator boasts the highest number of transactions because of its unique pathfinder algorithm and its CHI token system. The cross-chain bridge is a gamechanger on the Binance Smart Chain network, allowing users to efficiently swap tokens. In short, 1inch is able to easily aggregate liquidity from the largest DEX AMM’s such as UniSwap, SushiSwap, PancakeSwap, and BakerySwap. As the AMM space continues to expand, it seems 1inch will remain on the cunning edge. I’m looking forward to the seamless transactions and the innovations to follow.


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