DeFi Aggregator 1inch Network Launches its Spot Price Aggregator

1inch Network, a DeFi aggregator, recently announced the launch of a spot price aggregator to extract data for assets traded on DEXs on the blockchain.

The tool is set to provide a liquidity-weighted average of token spot prices to avoid issues within transactions.  

A blog from the network noted that the spot price aggregator aims to solve information-related tasks. This new instrument aims to curb price manipulations within a transaction and is recommended to be only used off-chain.

This includes the visualization of asset valuations extracted from the blockchain in the interfaces of websites and applications.

That said, the tool consists of smart contracts that communicate with various DEXes to immediately receive a token’s liquidity-weighted spot price. The aggregator supports multiple DEXes aggregated by the 1inch router and, therefore, all tokens traded on those DEXes.

The 1inch spot price aggregator uses custom wrapper smart contracts that wrap/unwrap tokens at the current wrapping exchange rate, to handle wrapped tokens, such as wETH, cDAI, aDAI, etc. 

The feature supports many DEXs on Ethereum, Binance Smart Chain, Polygon, Avalanche, Optimistic Ethereum, Arbitrum, and Gnosis Chain. The 1inch dApp interface and the Pathfinder algorithm are already using the tool.

Ideally, the spot price aggregator could be integrated into any place where a token price is displayed and needs to be converted into US dollar or any other fiat.

The new tool is set to offer numerous potential use cases that allow investors to view the value of their tokens. 

Where Does 1Inch stand?

On January 20, the network made the announcement of expanding its aggregation and limit order protocols to Avalanche, in efforts to grow multi-chain presence and interoperability. 

Furthermore, earlier this month, the protocol launched an investment tool called 1inch Earn to stimulate liquidity providers. The feature aims to provide more efficient use of capital compared to Automated Market Maker (AMM) pools.

Despite the recent ecosystem-centric developments, 1Inch’s price is still down 77% from its all-time high. In fact, its short-term and long-term ROI vs USD was noting negative values.