1inch has launched a new feature that lets users swap digital assets across different blockchains while keeping control of their assets. This feature, called “Fusion+,” combines both on-chain and off-chain liquidity to make swaps smoother. It also has built-in protection to prevent attacks that can happen during these transactions.
The new system uses atomic swap technology, which means that if a swap doesn’t go through, all the assets are safely returned to the sender. These swaps are managed by smart contracts, which ensure all the conditions are met without needing a third party to approve them.
In decentralized finance (DeFi), cross-chain transfers usually need bridges to move assets between blockchains. However, these bridges have often been risky and caused big losses. With 1inch’s new feature, users can swap assets across different blockchains without relying on bridges.
How It Works
1inch shared an example to explain how the new feature works. Imagine a user has POL tokens on the Polygon blockchain and wants to swap them for ETH on Ethereum. With this feature, users can swap tokens not just on the same blockchain but across completely different networks.
The process is simple. Users enter their swap details, which are then sent to “resolvers”—professional traders who compete to offer the best swap rates. The process works like a Dutch auction, where the price drops until a resolver accepts the trade.
Once the resolver accepts, they lock the POL tokens on Polygon and the ETH on Ethereum in separate contracts. When everything is confirmed, the ETH is unlocked for the user, and the resolver claims the POL tokens.
Although the process may seem a bit long, it’s protected by a time lock. If a swap isn’t completed in time, the assets are returned to the user.
1inch revealed this new feature on Sept. 12, when it released a white paper on its cross-chain interoperability protocol. This comes as the interest in cross-chain solutions grows, especially after Ethereum co-founder Vitalik Buterin shared his plans to improve cross-chain interoperability for Ethereum layer-2 networks.
Source: https://cointelegraph.com/news/1inch-cross-chain-swap-feature-fusion
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