1inch Fusion: A New Standard for Decentralized Finance - TOKEN2049 Singapore 2023

so hi everyone my name is Sergey Kunz I'm co-founder of one inch Network my background is soft engineer software architect for 18 years and how it said co-founder I and my co-founder one Anton buckoff we came to an idea and changed the default world back in 2019 and I'm gonna introduce today a new new standard for token swaps which is based on in December Lounge technology from one inch but before I would like to play a game with you guys can someone explain what the Dax is raise your hands I have some gifts for you this this guide what is the Dax this device exchange very nice valid this this guy there should get a chip they have some airdrop one inch physical one-inch token airdrops so you can play around with our wallet with our swaps without paying any gas fees um what what is um what is um math who knows what math is resonance no one I just tried to test your knowledge guys how familiar are you with default and the problems uh let's let's start uh one inch Network one each Network you Unice this realized protocols Empower users to perform efficient user-friendly and secure operations in DFS space sounds very complicated it is we have built since 2019 a lot of things we started with the aggregation protocol we launched our down with the token we have our one inch wallet which is a self-casted wallet which explain what you are signing this is very different tutorial some some other wallets out there um we introduced also own limit or protocol which is kind of decentralized or a book we have um also one topic which is highly important right now is the rig fully regulated product one inch pro we have SRO license in Switzerland we have uh um a team sitting in Arab United United Arab Emirates working on a water license and we plan to go also to to Azure as area as well so performance we keep uh 70 percentages of irrigation market share so we introduced back in 2019 aggregation we had 100 percentages we came down to 70 and it's good uh competitions is is a very nice uh to have uh it's it's just in favor of um uh of the users uh we have our limit order protocol uh first limit order protocol on in ethereum was Xerox we came to something what was more efficient and we are now using it in a couple of products 70 percentages we process in the protocols 363 billions of US dollars in volume 10 more than 10 billions uh wallets are using one inch we have more than 150 core contributors around globe who are building on on the services and we raised 190 Millions uh over three Three Financial rounds we started with the aggregation it was just a simple aggregation we just split it between multiple protocols like uni Swap kyber and um and banker and nowadays it's more complicated so we use multi-paths we use highly complex routing um I think one day this this routing can be used for um multi-galaxy jumps with the space shuttles it becomes very very complicated sometimes but it ensures that the user get the best execution since we can execute highly atomically and uh on on evm based chains we have problems in D5 most of the users don't know that they are math attacks they are hackers who are CU transaction if you just do a swap on social for example and they can swap before you swap after you I will explain more detail we have front running attacks some users are not using aggregators they are using direct decks and it's also you you don't get the the best rate right and it's also complicated user experience out there and sometimes also uh regarding the compliance regarding how clean is the liquidity it's also kind of issue which is coming also uh it became a problem in in the next years so math what is math um like we have a kind of Sub sub topic of math is front running so someone see you transaction and just do the same transaction as you and get some benefits for example you found a route which is uh which is kind of Arbitrage route so you swap on uni swap you sell like you buy on soon you stop you sell on on social Swap and you get some profits from this because it's like arbitrary straight because someone did a huge swap on social or something so someone can see your transaction and just replace and take the profit before you take it we have also sandwich attacks when you just do a swap and you set in a UI oh also before uniswap announced unusual packs which is also based on our idea uh with the Dutch auctions they had a huge problem that people exchanged on uni swap or alsoil pancake Swap and you sat in the swap the maximum acceptable price impact and depends on the amount you swap based on our calculations and analytics from ten thousand dollars most of the users were front-run and sandwiched and it happens like at accuracyu transaction Buy before you sell after you and take the profit in 2022 one half billions of US dollars were stolen from people by this kind of attacks these are around 10 percentages of trans all transactions uh happened in 2022 so you see we have two paths we have one path the tourney path where we have math we have hackers who are front running you sandwich you we have something new for you we have to the success path yeah with the unicorns rainbow their one inch Fusion one inch Fusion is based on our limit order protocol it's a suspicious kind of special implementation since our limit order protocol is highly extendable fully open source under MIT license so everyone can just take it build something on it build a business make money with this we don't care we appreciate the contribution for sure so through Fusion you have access to unlimited liquidity you have uh best rate execution in the market uh and I'm gonna prove this don't trust anyone yeah um I think and introduce also asynchronous trading on chain it's also very important since when you just write in a classic manner just you do one transaction after each other you need to wait until the first first transaction is executed so the second transaction can be executed after that because of the nonce model this is different here you just give a permit and it can be executed fully asynchronously so you don't have to wait for the first trade so the second thread can be executed or the third one liquidity in in one place it's very important to understand we introduce a system where market makers Arbitrage Traders can participate in the system if you look back there are um there are resolvers verified results it's also very important we have IML KYB system in place by the foundation um there are some people who there's a team who ensures that resolvers they are the market makers behind Fusion who execute the trade for the users are fully clean so we have no dirty liquidity and we you use CRM labs and some other providers we aggregate all the providers to ensure that and if we had the case already if someone get dirty liquidity on the wallet it's blocked automatically the same for the user so if the hacker after hair comes to to one inch they cannot exchange because we block them because theorem Labs is very fast also some other providers um and we have additional team calls that would put on The Blacklist some some users who do malicious activities resolvers who act as a Trader as an arbitrus Trader as a market maker they offer only liquidity the Arbitrage with the D5 liquidity like uni swap uh social Swap and swap depends on the network and also they hatch the position centralized exchanges that means those guys Bridge the liquidity from centralized exchange to the defy world so fishing destination token what that means you don't pay the transaction by yourself uh in the in the in the native token so just for example on ethereum you don't have to need any ethereum so who would like to play around with this you can come to me after the the speech I will give you some tips so you can play around with one-ish tokens and trade a little bit so since the transaction is executed by professional Market maker you don't pay in a native token you pay potentially in the destination token but very often in such a case here the transaction is paid by the Arbitrage reader by by market maker because it's profitable for the for them she's one trade with 3700 ethereum against usdt and you see this Fusion is based on Dutch auction so we came to ready with the direction to introduce a kind of digitalization if you have only a single point of entry and only one participant can decide who get the order who can fill the aura and which rate you get you get uh it's highly dangerous it's nothing better than a centralized exchange and when I I like the Marxist law if something can fail it will fail and we try to avoid this that's why we try to develop some highly efficient things and such auction is one of them so here in this case we start the Dutch auction from the um from the Oracle price from the spot price which you see on coin market cap and then we go down to the market price this is the price you get on on chain when you swap an aggregator just for example in ethereum three thousand seven hundred thousand ethereum to use the T you got Versa red than the spot price because liquidity is limited and of course market makers and MMS need to earn a little bit so and here in this case we had partial Fields um and this the the Dutch auction started to sell from the spot price you see the points two points there and every point is a partial feel that means the user didn't pay any fees for this and they got execution above the market rate and of course math by this protection by Design since this is just a permit a media transaction we call it you will see it more in the next years in the account abstraction that the user just signed a message and someone execute for the user this message based on the conditions so math protection by design a total radium Fusion performance we started we released in December uh 2022 we processed 11 billions of US dollars in volume we had one and a half millions of orders in total and around almost 500 000 of wallets you use this service you can still use the classic mode in one inch you can just select you can disable Fusion if you if you don't like it but yeah I suggest to use it because it makes makes sense to protect yourself from front running attacks from maps and also to execute to trade above the market price on chain you can also ask questions after the speech I'm here I would like to present something new what we released recently this is our Dev portal since we developed a lot of services since 2019 and if you have a d app if you have a wallet you need a lot of uh different information aggregated information and we came to an idea to to offer such a solution as a software as a service you can build on top of our apis your own the apps your own wallets you can get portfolio information so check it out uh it's on is it is it it's under uh one is the depth uh you can register and get a free account and if you need the Enterprise plan um yeah you can just ask for it and if you would like to contact us here QR codes um we have a great Community uh really really nice nice Dao and huge huge uh Community thank you very much it was a pleasure to stay here since my blockchain Builders uh Journey started here in Singapore back in 2018 I I participated on the ath hackathon from eth Global and I'm at vitalik and I was impressed and started to build an inference space thank you very much it was a pleasure to stay here