1inch, a DEX aggregator, has expanded its operations to the NEAR platform. Whilst other DeFi protocols are maybe thinking about it; the 1Inch team has taken the bold step in front.
The team announced their intentions to base its AMM Automated Market Maker) protocol on the sharded smart contract platform NEAR. According to the 1Inch CEO, Sergej Kunz, the company will also implement its Pathfinder aggregation algorithm.
This new version of Mooniswap on NEAR will be independent of its main version on the Ethereum network for now. Users will have the freedom to take Ethereum tokens to this new blockchain. However, the two platforms will have different liquidity pools.
NEAR is another smart contract platform that has higher scalability than the Ethereum platform. It doesn’t house independent blockchains or parachains like what is attainable on Cosmos (Atom) and Polkadot (DOT). Instead, NEAR offers one single sharded chain at individual blocks.
The reason behind such construction on the NEAR platform is to make things simple for developers and offer a format that is familiar to users. The single environment of NEAR Protocol is almost like Ethereum’s architecture presently. This environment is where every decentralized application on the platform exists.
According to Kunz, the scalability of NEAR will enable the team to learn everything about sharding in preparation for the latest Ethereum 2.0 launch. Given that the new Ethereum platform will be deployed on NEAR next year, developers can familiarize themselves with how the platform works from now.
1inch and Mooniswap Operations
The Mooniswap operates in a way that reduces impermanent loss to users. It has a system that delays virtual prices so that front-running will be impossible. As a result of that, arbitrage traders end up with a lower profit. This system makes it easy to enact changes to asset prices from previous transactions gradually over a five-minute time frame.
Moonswap is one of the DeFi protocols on Ethereum that focused its resources on expanding to another blockchain. Apart from them, another protocol Balancer had a one-time deal with NEAR, but it wasn’t related to building on its network.
No one is surprised with this latest development because there have been some recurring scaling issues on Ethereum. So, many developers of DeFi protocols have, for a long time, started their search for solutions.