Key Features
Zero Fees
The 1inch Limit Order Protocol charges no transaction fees, making it exceptionally cost-efficient regarding gas fees.
Dynamic Pricing
Prices are calculated by smart contracts based on supply and demand, ensuring optimal trade execution—ideal for auctions and real-time market adjustments.
Conditional Orders
Users can set custom conditions for order execution (e.g., price thresholds) to maximize trading profits.
RFQ (Request for Quote) Support
The protocol facilitates RFQs—specific-quantity buy/sell orders—enhancing flexibility for institutional and retail traders.
Multi-Chain Compatibility
Operates across major blockchains:
- Ethereum
- BNB Chain
- Polygon
- Avalanche
- Fantom
(and more)
Implementation Use Cases
Peer-to-Peer (P2P) Orders
Enables trustless, secure swaps between individuals:
- Users find a counterparty to swap a specific token amount.
- Counterparty shares their crypto address.
- Address is entered in 1inch dApp’s P2P tab to complete the trade.
👉 Discover how P2P trading boosts DeFi adoption
Stop-Loss Orders
Leveraging conditional orders:
- Triggers when a predefined price level is hit.
- Automatically closes positions to limit losses.
Trailing Stop Orders
A dynamic variant of stop-loss:
- Set a fixed "trail" amount below market price.
- If market rises, stop price adjusts upward; if market falls, stop price holds steady.
Auction Mechanisms
Thanks to dynamic pricing:
- Protocols like MakerDAO’s Liquidation 2.0 use auction models.
- Traders can participate via 1inch Limit Order Protocol.
👉 Explore auction-based DeFi strategies
FAQ
Q: Is the 1inch Limit Order Protocol secure?
A: Yes—it relies on audited smart contracts and operates non-custodially, ensuring user funds remain under their control.
Q: Can I use this protocol for high-frequency trading?
A: While possible, gas fees and block times may limit efficiency. It’s better suited for strategic, condition-based trades.
Q: How does dynamic pricing benefit auctions?
A: It adjusts prices in real-time based on bids, creating a fair, competitive environment (e.g., for liquidations).
Q: Are there limits to order sizes?
A: No—orders can range from micro-transactions to institutional-scale deals, depending on liquidity.
Q: Which wallets support this protocol?
A: Any wallet compatible with the chains listed above (e.g., MetaMask, Trust Wallet).
The 1inch Limit Order Protocol merges DeFi innovation with practicality, offering tools for traders, builders, and auction participants. Its fee-free, multi-chain model sets a new standard for decentralized trading efficiency.