1inch, the team behind the 1inch.exchange decentralized exchange aggregator that optimizes trades by splitting them across multiple DEXes, is riding high after completing its inaugural funding round.
Announced on Tuesday, August 11th, the $2.8 million seed fundraise brought in investments from more than a few cryptoeconomy heavyweights. The round was notably led by Binance’s accelerator arm Binance Labs and also included investments from Dragonfly Capital, FTX, and Galaxy Digital.
The participation of Binance Labs is particularly interesting, insofar as the wider brand’s Binance Smart Chain (BSC) effort is a aspiring competitor to Ethereum and the Ethereum-centric DeFi ecosystem, of which 1inch has become a quick star. But it’s precisely this rapid and useful rise to stardom that has Binance betting its chips accordingly. On the news, Binance CEO Changpeng Zhao said:
“DEX aggregation is a critical building block that co-enabled the most recent DeFi boom. It allows executing large order sizes at low slippage rates. 1inch has become the de facto interface for trade execution in DeFi … It is of great pleasure to support the 1inch team in their relentless quest to drive user adoption in DeFi.”
Rise of the DEXes
The fact that 1inch just locked down its first funding comes as no surprise, considering the aggregator’s explosive performance amid the ongoing 2020 DEX boom.
Indeed, 1inch.exchange just turned one year old and passed the $500 million milestone mark back in June. Yet fast forward a little over a month later to now, and the aggregator has already jumped to ~$1.5 billion in all-time volume as new trades have flowed in fast around the blooming of yield farming campaigns in DeFi.
And the good news for 1inch and its rising DEX colleagues is that these exchanges are only just beginning to have breakout success and come into their own. For example, a new monthly DEX volume record was set last month as these exchanges collectively powered over $4.3 billion…