8 months ago
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1inch unifies decentralized protocols, thus, allowing users to conduct efficient, user-friendly, and secure operations in the DeFi space.
1inch Network, a multichain liquidity aggregator announced its integration with Lumia. Lumia is a protocol designed to broaden on-chain liquidity and offer better pricing options for Decentralized Finance (DeFi) users.
1inch Leverages on Lumia’s Expertise
According to a press release shared with Coinspeaker, 1inch aims to achieve its purpose by leveraging Lumia’s access to Centralized Exchanges (CEXs). Sergej Kunz, co-founder of 1inch commented on the integration, stating, “1inch aims to offer users liquidity across the entire crypto market, and we are glad to welcome Lumia as a new and significant liquidity source.”
Through the integration, 1inch can now tap into Lumia’s superior liquidity and deliver it seamlessly to on-chain users. Lumia’s unique selling point lies in its capacity to transfer liquidity to DeFi platforms including 1inch’s non-custodial environment, directly from well-known CEXs like Binance Holdings Ltd, OKX, and KuCoin.
So far, 1inch has deployed Lumia’s liquidity solution through the Request for Quote (RFQ) method, with Lumia acting as a Private Market Maker (PMM). This provides rapid trade execution and allows for the smooth movement of liquidity between centralized and decentralized exchanges.
As highlighted in the release, this integration is anticipated to be extended to 1inch Fusion, the gasless solution created by the trading platform for effective decentralized trading. Accordingly, Lumia will serve as a Resolver in this role, contributing to Fusion’s liquidity and efficiency.
What DeFi Users Stand to Benefit from the Integration
Lumia’s ability to aggregate order books from key CEXs assures the most competitive price in DeFi. Furthermore, the provision of high-quality, CEX-sourced orders ensures Lumia liquidity providers earn substantial fees while preserving great capital efficiency.
As a leading crypto liquidity layer, Lumia has expressed its dedication to merging the liquidity of centralized and decentralized exchanges. Lumia’s product suite provides extensive on-chain liquidity, enabling developers to implement complex trading applications.
On the other hand, 1inch unifies decentralized protocols, thus, allowing users to conduct efficient, user-friendly, and secure operations in the DeFi space. With access to many liquidity sources across various chains, the 1inch Decentralized Application (dApp) provides a comprehensive suite of protocols as well as a secure mobile wallet for smooth asset management.
With liquidity derived from over 500 platforms, 1inch cements its position as a leading DEX aggregator in DeFi. The platform has enabled over 76 million trades, resulting in a lifetime volume of more than $428 billion.
Markedly, on-chain liquidity is a critical component for enabling widespread adoption and reducing volatility for a smooth trade. It is believed to be a very important indicator in the future since it allows projects to publicly exhibit their health to the market while also providing objective verification of project health.
For instance, Velar, a crypto liquidity said on Tuesday that it aims to to broaden its ecosystem by integrating DeFi liquidity into Bitcoin’s Proof-of-Work (PoW) network through its new product called Dharma.
