Chainstack and 1inch: A collaborative journey towards DeFi excellence

Petar Stoykov

June 30, 2023 in Customer stories

Accessing accurate real-time DeFi data across multiple networks

At 1inch Labs, our mission is to provide our users with the best possible DeFi experience in a permissionless and trustless manner building 1inch Network. We attribute part of our success to our valuable partnership with Chainstack. Their unwavering dedication to overcoming challenges and providing optimal and innovative solutions have empowered us to deliver more efficient SaaS products such as 1inch API. We are confident that our ongoing collaboration with Chainstack will continue to drive our mutual growth and redefine the future of DeFi.
Sergej Kunz, Co-Founder, 1inch Network

At Chainstack, we take pride in our ability to empower innovators in the decentralized finance (DeFi) space. As collaborators with market leaders like the 1inch Network, we help create a seamless DeFi experience for users worldwide. Through our expertise in managed blockchain services and a strong focus on addressing challenges and providing optimal solutions, we have forged a dynamic partnership with 1inch. Together, we are working to revolutionize the DeFi landscape, pushing boundaries and setting new industry standards.

1inch: DeFi access made easy

Decentralized exchange (DEX) aggregators, like 1inch, are essential for the DeFi ecosystem as they consolidate liquidity from multiple DEXes and deliver the best possible rates for token swaps. This plays a critical role in simplifying access to DeFi services and enhancing the overall user experience.

Figure 1: 1inch DeFi aggregator – how it works; Source: 1inch

By harnessing the power of DEX aggregators, users gain the ability to execute their trades efficiently without manually searching for the best rates across various platforms. This not only saves users time but also ensures that they receive optimal pricing and execution for their transactions.

1inch empowers users to access the expansive world of DeFi with ease through its innovative Aggregation Protocol, ultimately driving the adoption and growth of decentralized finance.

What is 1inch?

1inch is a leading DeFi platform that offers a comprehensive suite of services to its users, including a DeFi wallet, an aggregation protocol, a limit order protocol, and a liquidity protocol. With more than 383 liquidity sources, the platform has seen over $286 billion in total volume, 4 million wallets, and 29 million trades.

The 1inch D eFi wallet allows users to buy crypto using their bank cards via partner providers, transfer crypto across different blockchain networks, and swap tokens at optimal rates. Users can also stake the platform’s native token, 1INCH, to participate in network governance.

Figure 2: 1inch DeFi wallet; Source: 1inch

Through its innovative aggregation protocol, 1inch sources liquidity from multiple DEXes, ensuring the best swap rates for users. The platform’s limit order protocol is regarded as the most innovative and flexible in the DeFi space.

Additional offerings from 1inch include the 1inch API, which offers an advanced discovery and routing algorithm for non-custodial asset swaps at the best rates across major DeFi ecosystems, and the 1inch RabbitHole, a feature that protects MetaMask users from sandwich attacks.

In line with its commitment to fostering network growth and incentivizing contributions, 1inch has established a grant program that provides grants and resources for developers just as well.

The platform is committed to security and performance, evidenced by its status as the most audited project in DeFi. It employs sophisticated security measures to protect user funds during swaps on other DeFi protocols. 1inch’s smart contracts verify transaction execution in real-time to ensure user funds’ security. Token holders also have a say in key protocol parameter decisions, thanks to the 1inch DAO.

1inch has garnered significant usage across popular blockchains, including Ethereum ($243B volume, 130K monthly users), BNB Chain ($23.1B volume, 99K monthly users), and Polygon ($16.5B volume, 56K monthly users).

How 1inch empowers users with cutting-edge solutions

1inch has revolutionized the DeFi landscape by offering a diverse range of products and services that cater to the needs of the community. Among the most recent releases is the Fusion upgrade, which enhances swap efficiency and security by aggregating liquidity from across the crypto market. Consequently, users can access the best rates when swapping their assets.

Meanwhile, the 1inch RabbitHole safeguards MetaMask users from sandwich attacks. Together, all 1inch offerings work to create a robust and secure DeFi ecosystem for users.

Figure 3: 1inch RabbitHole sandwich attack protection; Source: 1inch

1inch’s Limit Order Protocol boasts a suite of notable features, such as zero fees, dynamic pricing, conditional orders, extra RFQ support, multi-chain functionality, and various possible use cases including P2P orders, stop-loss orders, trailing stop orders, and auctions. The platform also offers a grant program for developers who are interested in building upon its protocols.

Challenges of fetching smart contract data in real-time

Accessing smart contract data in real-time can be a challenging task for decentralized finance platforms like 1inch, due to the following reasons:

Querying token price, liquidity, and transactional data across multiple DEXes: In the rapidly expanding DeFi ecosystem, there are numerous DEXes, each with its own set of trading pairs, liquidity sources, and data points. Fetching real-time data from all these DEXes, while simultaneously aggregating the information, can be computationally intensive, making it problematic to ensure accurate, up-to-date data.
Fetching data from native DEXes on various blockchain networks: As DeFi expands to encompass numerous blockchain networks, DEX aggregators like 1inch need to fetch data not only from DEXes on one blockchain network but also from native DEXes on multiple networks. This adds another layer of complexity, as it involves handling data from blockchain networks with differing characteristics, consensus mechanisms, and data formats.
The importance of data freshness for DeFi users: DeFi users rely on platforms like 1inch to provide accurate, real-time data to make informed decisions. Data freshness is of utmost importance, as stale or incorrect data may lead to unfavorable trade executions or missed arbitrage opportunities. Maintaining user trust in the platform and the wider DeFi ecosystem hinges upon the ability to deliver reliable, up-to-date data.

Due to these challenges, fetching smart contract data in real-time is a complex task. Nonetheless, platforms like 1inch continue to work diligently to overcome these hurdles, ensuring optimum service quality for users in the ever-growing DeFi space.

Picking up after TheGraph Hosted Service sunset

With the sunset announcement of TheGraph Hosted Service, we, the Chainstack team, fully appreciate the implications for various applications, particularly our partner, 1inch. Instead of seeing this transition as a hurdle, we viewed it as a golden opportunity to elevate our services and offer our clients ever more efficient solutions:

Broadening blockchain network support: The switch from TheGraph Hosted Service can often be daunting, but at Chainstack, we thrive on challenges. With the introduction of Dedicated Subgraphs’ seamless migration tool, this transformation became a breeze. Our commitment was unwavering: we guaranteed that 1inch continued to enjoy unfettered data accessibility and robust query capabilities.
Debunking complex pricing structure: TheGraph’s Hosted Service pricing has long been a complex maze. Recognizing the need for 1inch to balance cost estimations, budgeting, and focus on core operations, we, at Chainstack, stepped up to the plate. Our answer? A transparent, manageable pricing structure that took away the guesswork out of the equation, allowing 1inch to center their attention on key projects.
Delivering uninterrupted support: The absence of 24/7 support from TheGraph Hosted Service had often led to uncertainties, especially in critical moments. This was precisely when Chainstack shined. Placing our client’s needs at the forefront, we committed to round-the-clock support, ensuring that 1inch’s operations flowed seamlessly and efficiently.

The sunset of TheGraph Hosted Service brought to light the complexities of accessing smart contract data and managing substantial historical datasets. However, Chainstack stood ready to tackle these complexities head-on. We were enthusiastic about harnessing this shift to enhance our services for 1inch, guaranteeing them reliable and accurate data access in the rapidly advancing DeFi ecosystem.

How 1inch queries cross-chain data in real-time with Chainstack

Chainstack played a crucial role in empowering 1inch to efficiently query real-time data across various blockchain networks. Here’s how Chainstack achieved this impressive feat:

Deployment of 28 subgraphs on Dedicated Subgraphs dedicated indexer: To ensure seamless data querying across multiple networks, 1inch has deployed 28 subgraphs on Dedicated Subgraphs. This deployment enables the platform to access critical and comprehensive information from numerous decentralized exchanges, blockchain networks, and other data sources.
Support for popular protocols: Dedicated Subgraphs is designed to cater to multiple protocols, including some of the most popular choices such as Ethereum, BNB, Polygon, and Avalanche. This extensive network support enabled 1inch to gather data from diverse sources effortlessly and expand its services across these networks.
Minimizing latency and enabling faster data response times: Chainstack prioritizes efficient data querying by minimizing latency and ensuring faster response times. This optimization is particularly crucial in the DeFi landscape, where real-time access to accurate data plays a pivotal role in enabling users to make well-informed decisions about their assets.
Importance of uninterrupted data access in the fast-paced world of DeFi: In the rapidly evolving and competitive DeFi landscape, uninterrupted access to real-time data is paramount. Chainstack’s robust infrastructure upholds this access, allowing 1inch and its users to stay ahead of the curve and capitalize on emerging opportunities.
Customizations and 24/7 support: Alongside its technical capabilities, Chainstack offers personalized customizations to cater to the specific needs of partners like 1inch. Moreover, Chainstack’s round-the-clock support guarantees assistance in addressing issues promptly, ensuring minimal disruptions in data access and query performance.

Chainstack plays a crucial role in empowering 1inch by facilitating real-time data queries across various networks, a vital factor for the platform’s triumph in the rapidly interconnected DeFi ecosystem. By effectively fulfilling these core functions, Chainstack ensures the seamless operation of 1inch in leveraging real-time data from multiple networks, which is pivotal for the platform’s prosperity within the ever-evolving DeFi landscape.

1inch on Chainstack: Overcoming obstacles and driving success

At Chainstack, our partnership with 1inch has been an exciting journey of collaboration, growth, and mutual success. As a leading provider of managed blockchain services, we have tackled various challenges faced by the 1inch team and worked closely together to provide the best solutions.

Initially, 1inch brought up a latency issue they were experiencing when comparing us to a competitor. Determined to overcome this challenge, we conducted extensive tests in collaboration with 1inch to identify the source of high latency and devise improvements. This focus on creating better solutions not only addressed their concerns but also revealed our unwavering commitment to their success.

As we improved the stability of our Dedicated Subgraphs offerings based on their feedback, we opened up new growth opportunities for 1inch, enabling them to access the Polygon and BNB chains. This achievement underscores the power of a collaborative and innovative approach to problem-solving.

Recognizing 1inch’s unique needs, we have provided them with specialized support for Dedicated Subgraphs, which is integral to our premium support package. This ensures a seamless and customized experience with our services.

Our fruitful collaboration with 1inch extends beyond technical support. We have actively explored marketing and co-sponsorship opportunities, creating a holistic partnership that adds value in multiple dimensions. Furthermore, in a show of commitment to their satisfaction, we have offered 1inch a 20% discount on our manual quotations, ensuring they receive the highest quality service at affordable prices.

As we continue our partnership with 1inch, we remain focused on addressing their feedback and further refining our services. We are driven by a passion to meet their requirements without compromises and aim to consistently exceed their expectations.

Resolution summary

Our partnership with 1inch has been characterized by open dialogue and strong collaboration in addressing various challenges. Key areas where we have worked together include:

Diagnosing and resolving latency issues to ensure optimal performance.
Enhancing Dedicated Subgraphs product stability and opening new growth opportunities for 1inch on Polygon and BNB chains.
Providing specialized support for Dedicated Subgraphs tailored to 1inch’s unique needs.
Collaborating on marketing opportunities, including co-sponsorships and industry events.
Offering a 20% discount on manual quotations to deliver high-quality service at affordable rates.

Our determination to prioritize 1inch’s needs and exceed their expectations has strengthened our relationship and allowed both parties to benefit from this invaluable partnership. We are excited to continue working with 1inch and eagerly await the new challenges and successes that lie ahead.

Conclusion

In summary, Chainstack plays an instrumental role in empowering 1inch to aggregate data across multiple networks, delivering accurate and timely data to their end users. By providing a robust infrastructure, minimizing latency, offering customization options, and ensuring 24/7 support, Chainstack ensures that 1inch can continue to unlock the full potential of decentralized finance for its users.

Consequently, 1inch is central to the advancement of the future of finance, and its success is a testament to what is possible in the world of DeFi. With innovative services, seamless integration, and an unwavering commitment to user satisfaction, 1inch continues to redefine and expand the boundaries of the DeFi landscape.

Our close collaboration with 1inch is a driving force behind this success. Together, we are dedicated to the ongoing development of new solutions and technologies that cater to the evolving needs of the DeFi community. By harnessing our combined expertise and resources, we have established a strong partnership that will pave the way for further innovations in the decentralized finance ecosystem.