The DeFi ecosystem has been plagued by a weakness in cross-chain interoperability due to its cumbersome, risky transactions. As blockchains don’t directly interact, users are exposed to increased security risks when moving assets between networks. While decentralized solutions are more secure, they can be less user-friendly, which discourages wider adoption.
Fusion+, the first release from the DeFi protocol by 1inch, is an innovative solution that eliminates the need for cross-chain exchanges. It brings simplicity and security. Fusion+ integrates liquidity across the Web3 eco-system. It is available now in 1inch’s decentralized app (dApp) as well as 1inch wallet.
Blockchain interoperability: A new chapter
A combination of atomic-swap technology, cryptographic security, and an innovative Dutch auction for optimal rate ensures that the solution is secure.
Fusion+, by integrating liquidity across the Web3 eco-system, has the potential of setting a new standard in blockchain interoperability. Fusion+’s beta launched in September has processed thousands of dollars worth of trading volume. This shows its effectiveness and potential for transformation.
This 1inch system offers many standout features.
- Secure by DesignFusion+ integrates Maximal Extractable Value (MEV), which ensures that all trades will be fully executed or can safely be reverted. It eliminates issues such as partial trades and failed transactions.
- A seamless experience for users: Users simply select the tokens and chains they wish to swap, confirm the transaction, and keep the swap tab open until completion—no complex configurations are required.
- Rates that are optimalFusion+ ensures that users get the best prices by using Dutch auctions.
- Transactions that are not trustworthyThe system uses cryptographic timelocks and hashlocks to ensure trustless decentralized exchanges that do not rely on third parties.
Fusion+: how it works
Fusion+ uses the intent-based framework of 1inch and atomic switch technology, introduced late in 2022. Three steps are involved in the process:
- Start the swap The user sets the minimum amount they want to earn and then launches a Dutch auction. Resolutions bid lower fees up until an order is accepted.
- Escrow & locking The funds are placed in escrow on the destination and source blockchains. The process is secured by cryptographic secrets and timelocks.
- Complete the swap Cryptographic secrets are used to unlock tokens from the original user on the chain of the final destination. In the event that the exchange is not completed in the time frame specified, the funds are returned back to the owner.
Fusion+ comes at a crucial time for DeFi. Growth has virtually been halted due to inefficiencies and vulnerabilities. The technology, by eliminating the reliance on bridges reduces the risks of hacks and exploits that have been plaguing the industry in recent years. DeFi’s streamlined experience will also attract more users, including retail investors and institutional participants.
Fusion+ can be accessed immediately by users through the 1inch dApp or Wallet, without additional setup. Select the networks and tokens you want to exchange, confirm your transaction and leave the swap tab opened until everything is done.
Find out more on 1inch.io.
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