The new OTC feature comes with benefits such as slippage-free transactions.
The foremost DEX aggregator on the Ethereum and Binance Smart Chain, 1Inch Exchange, delved into DeFi to positively disrupt the ecosystem. The platform made user-experience its top priority. For instance, 1Inch created its proprietary Chi gas token to enable users to pay lower gas fees than they would typically pay for Ethereum network transactions. In addition to that, 1Inch DEX boasts the best crypto swap rates. It is no wonder that 1Inch has been posting impressive results since its launch.
1Inch also made the security of its platform a top priority. A long-standing partnership with Hacken – a leading blockchain security firm, and other audits by high profile security firms, underscore 1Inch’s commitment to the security of its platform and users.
To further optimise the security and privacy of its platform, 1Inch has announced the integration of over-the-counter (OTC) to the 1Inch decentralized application (dApp).
What Is Over-The-Counter (OTC) Trading?
OTC is a type of peer-to-peer (p2p) trade that takes place off-chain. 1Inch DEX usually uses an automated market maker (AMM) system to match buyers with sellers. OTC, on the other hand, does not use the AMM mechanism. Rather, OTC enables private market makers (PMM) to fill buy and sell orders. When users trade via OTC on 1Inch, other liquidity sources are turned off while users’ orders are redirected to the PMMs.
Benefits Of OTC
1. When users trade using OTC, the swap price is fixed. Buyers thus get the exact amount of tokens they expect because the price does not change during the transaction. Traders are not therefore exposed to slippage, which normally occurs on an AMM DEX.
2. Private market makers (PMMs) compete with themselves to attract more users to trade with them. The competition helps to guarantee that users will be offered the best possible swap rates.
3. OTC optimises the security and privacy of 1Inch. It eliminates slippage, thus taking care of the frontrunning problem often encountered on AMM DEXes.
Frontrunning occurs when a malicious party sees details of a swap transaction while it is in progress and tries to manipulate the transaction sequence. These malicious parties introduce their transactions into the sequence and trade before the transaction of a legitimate user goes through. The result is that a user’s transaction eventually happens at a rate worse than expected, or the transaction fails.
Frontrunning requires slippage to happen. OTC, by doing away with slippage, effectively eliminates frontrunning.
How To Use OTC On 1Inch
OTC mode is not activated by default on the 1Inch dApp. To use it, follow these steps,
1. Visit the 1Inch DEX platform and connect your wallet.
2. To activate OTC, click on the OTC button at the base of the screen
3. Select the tokens to swap, and click on the ‘Swap’ button to complete the swap.
The OTC option is available in both Ethereum and BSC modes.
1Inch is a cross-chain DEX aggregator. It runs on Ethereum and Binance Smart Chain networks. The 1Inch team continually strives to implement features that will ensure the best user experience on its platform. The new OTC feature follows another feature – Virtual rates, which was implemented earlier to protect users from frontrunning.
In addition to user-benefits such as WYSIWYG (what-you-see-is-what-you-get) trades and best swap rates, the introduction of OTC has improved the security and privacy of the 1Inch platform.
Source : bsc.news
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