Decentralized finance (DeFi) has transformed the way users interact with digital assets, and 1inch stands out as one of the most powerful tools for efficient token swaps. As a leading transaction aggregation protocol on the Ethereum blockchain, 1inch leverages advanced algorithms to find the best possible trading routes across multiple decentralized exchanges (DEXs). Whether you're swapping stablecoins or exploring new DeFi tokens, understanding how to use 1inch effectively can save you time, reduce slippage, and even lower gas costs.
This comprehensive guide walks you through everything you need to know—from basic setup to advanced features like limit orders and gas optimization using CHI GasToken—all while keeping your experience secure and cost-efficient.
What Is 1inch?
1inch is a decentralized exchange aggregator that scans numerous DEXs such as Uniswap, SushiSwap, and Curve to execute trades at the most favorable rates. Instead of manually checking each platform, 1inch automatically splits your trade across multiple liquidity sources to minimize price impact and maximize output.
Its core value lies in smart routing and liquidity aggregation, making it a go-to solution for both casual users and experienced traders in the DeFi space.
Advantages and Limitations of 1inch
✅ Key Benefits
- Access to deep liquidity: By pulling from dozens of integrated DEXs, 1inch enables trades for nearly any ERC20 token available on decentralized markets.
- Optimized pricing: The protocol calculates optimal split routes to reduce slippage, especially beneficial for large trades.
- User-friendly interface: Integrated within popular wallets like imToken, accessing 1inch is seamless and intuitive.
- Advanced features: Supports limit orders and gas-saving mechanisms like CHI GasToken.
❌ Potential Drawbacks
- High gas fees during network congestion: Since 1inch operates primarily on Ethereum, transaction costs can spike during peak usage times.
- Multiple approvals required: First-time swaps require token approval, adding an extra step to the process.
👉 Discover smarter ways to manage gas fees and maximize your DeFi returns.
How to Use 1inch in imToken: A Step-by-Step Walkthrough
Using 1inch inside the imToken wallet is simple and secure. Follow these steps to start swapping tokens today.
Step 1: Access 1inch via imToken’s DApp Browser
Open imToken and navigate to the DApp browser. In the search bar, type “1inch” and select the official site. Ensure you’re visiting the legitimate URL to avoid phishing risks.
Step 2: Connect Your Wallet
On your first visit, you'll be prompted to authorize the DApp. This grants 1inch read-only access to your wallet address—no private keys are shared, and no gas fee is charged for this step.
Step 3: Choose Tokens to Swap
Select the token you want to trade from and the one you wish to receive. For example, let’s say you want to swap USDT for BAT. Enter the amount you’d like to exchange.
The platform will instantly display estimated output, including slippage tolerance and expected price impact.
Step 4: Approve Token Spending
Before swapping, you must authorize 1inch to spend your USDT. Tap “Unlock 10 USDT” (or whatever amount you're trading), then confirm the transaction in your wallet.
💡 Pro Tip: If you frequently trade with USDT, consider selecting “Infinite Unlock” to avoid repeated approvals. However, only do this if you fully trust the platform, as it grants ongoing spending permission.
Step 5: Execute the Swap
Once approval is confirmed, return to the 1inch interface. Pull down to refresh, then click “Swap Now”. Review the details carefully, tap “Verify”, and confirm the transaction in imToken by entering your password.
Wait a few moments for the Ethereum network to process your trade.
Step 6: Confirm Transaction Success
Upon completion, you’ll see a success notification. You can also check your wallet balance or view the transaction on Etherscan to verify receipt of the new tokens.
Reduce Gas Fees with CHI GasToken
One of the biggest pain points in Ethereum-based DeFi is unpredictable and often exorbitant gas fees. To combat this, the 1inch team introduced CHI GasToken, an innovative tool designed to help users save on transaction costs.
How CHI Works
CHI is an ERC20-compliant gas token that allows you to "store" gas when prices are low and use it when fees surge. Here's how:
- When Ethereum gas prices are low, you can mint CHI tokens by paying a small amount of ETH.
- Later, when gas prices rise, you can burn CHI tokens during transactions to offset part of the fee.
This mechanism effectively lets frequent traders hedge against volatility in network congestion.
Additionally, since CHI is tradable like any other ERC20 token, you can buy or sell it directly on supported exchanges.
👉 Learn how top traders optimize gas usage across DeFi platforms.
Use Limit Orders for Precision Trading
Beyond instant swaps, 1inch supports limit order functionality, allowing you to set a specific price at which you want to buy or sell a token.
For example:
- Set a limit order to buy ETH at $3,000 when it’s currently trading at $3,200.
- Or sell your DAI when ETH reaches $3,500.
These orders remain active until fulfilled or canceled. While they don’t guarantee execution, they give you greater control over entry and exit points—similar to traditional finance but fully decentralized.
This feature is ideal for strategic traders who want to automate their portfolio management without relying on centralized exchanges.
Important Tips for Efficient Trading on 1inch
To get the most out of 1inch, keep these best practices in mind:
- For small trades: Prioritize minimizing gas fees over slippage. High fees can eat into profits on low-value transactions.
- For large trades: Focus on reducing slippage. Use 1inch’s route optimization to split large orders across multiple pools.
- Always review transaction details before confirming—especially estimated output and gas cost.
- Revoke token approvals periodically for unused DApps using tools like revoke.cash to enhance security.
Frequently Asked Questions (FAQ)
Q: Is 1inch safe to use with my crypto wallet?
A: Yes. 1inch does not take custody of your funds. All transactions occur directly between your wallet and smart contracts on-chain. Just ensure you're using the official website and never share your seed phrase.
Q: Why do I need to approve tokens every time I swap?
A: Token approval is a security feature of the Ethereum network. It ensures that no contract can spend your tokens without explicit permission. You only need to approve each token once unless you choose infinite unlock.
Q: Can I use 1inch on blockchains other than Ethereum?
A: Yes. While originally built for Ethereum, 1inch now supports multiple networks including Binance Smart Chain, Polygon, Optimism, Arbitrum, and others—helping users access lower-fee alternatives.
Q: What happened to the 1INCH governance token?
A: The 1INCH token was launched in 2020 and serves as the governance token for the protocol. It allows holders to vote on upgrades and participate in liquidity mining programs.
Q: How accurate is the price estimation on 1inch?
A: Price estimates are highly accurate under normal conditions. However, rapid market movements or extreme volatility may cause slight discrepancies between estimated and actual output.
Final Thoughts
1inch empowers users with intelligent trading tools that simplify access to fragmented DeFi liquidity. From minimizing slippage to cutting gas costs with CHI GasToken and enabling precise limit orders, it’s one of the most versatile platforms in decentralized finance.
Whether you're swapping tokens daily or building a long-term DeFi strategy, mastering 1inch gives you a competitive edge in the evolving blockchain economy.
👉 Start optimizing your DeFi trades with advanced tools and insights today.
Note: This article does not constitute financial advice. Always conduct your own research and consult with professionals before engaging in digital asset transactions.