A common question asked is, "Why should I use 1inch instead of a regular DEX like Uniswap?”
At first glance, the interface of 1inch Network looks very similar to a lot of Decentralized Exchanges (DEXes) in DeFi; however, under the hood there are some powerful features to help users save money on swaps.
By design, 1inch uses a dynamic "aggregation" protocol. This is completely different from the AMM protocols of individual DEXes. Instead of executing transactions, it finds the cheapest rate amongst a multitude of Dexes (including Uniswap and Pancakeswap), and submits the transaction through that DEX. This means that if Sushiswap has a cheaper rate than Uniswap, 1inch will do the work for you and route your swap through Sushiswap.
Transaction splitting is also another key component to how 1inch saves money for its users. If you were to make a swap on an individual DEX (like Uniswap), your trade could only go through one single liquidity pool. Therefore, as your trade size increases, a larger negative price impact would be incurred, causing unnecessary losses.
In addition to efficient routing and transaction splitting, 1inch also works to optimize gas fees. 1inch Network contributors are continually updating the protocol to enhance gas optimization, resulting in cheaper gas fees than most of the leading DEXes. There are no exchange fees, no deposit fees, and no withdrawal fees. The only costs for users are only dependent on the decentralized exchanges used to source liquidity for trades, and 1inch even does its best to limit these as much as possible through the use of "Infinite Unlock" and the CHI Gas Tokens.
For example, the Uniswap exchange has a flat fee of 0.3% for its orders, and Balancer charges a variable fee depending on which pool you're entering. In general, nearly no DEXs are offering fee-free trades.
The native 1INCH token is not just a utility token but also provides governance for the platform, and fees and rewards on 1inch are now wholly reliant on DAO proposals and voting. If you look under the "DAO" tab of the 1inch website and then the "Governance" link to the left, you can see the current swap fee, the governance rewards, and other parameters, as well as participating in governance by voting on proposals.
Due to the protocol's efficiency, gas fees for smaller transactions are often cheaper than Uniswap, even if 1inch routes the transaction through Uniswap itself.
With all of these unique qualities combined, anyone who uses 1inch will save substantial amounts of capital in comparison to using individual dexes like Uniswap
In summary, 1inch demonstrates superiority in terms of flexibility, best pricing, and trading efficiency. By providing access to various DEXes and utilizing technology to optimize exchanges, 1inch has become an immensely useful solution for crypto traders seeking ways to enhance their trading outcomes
https://medium.com/@mfoxse/swapping-in-fusion-mode-a-comprehensive-guide-with-1inch-b735f147e288