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As per 1inch, P2P service offers trustless swaps backed by smart contracts and complete decentralization.
On Thursday, March 3, decentralized aggregator 1inch Network introduced new peer-to-peer (P2P) functionality on its platform. This new functionality comes baked into the 1inch decentralized application or DApp.
The goal of this P2P feature is to secure crypto swaps between individual users. 1inch said that the introduction of this new feature comes amid the rising demand from users.
This feature allows users to mention the person or wallet on the other side of the trade. This is opposed to the OTC or over-the-counter payment wherein 1inch matches the order with a taker. The official announcement notes:
“A user finds a counterparty for swapping a certain amount of tokens. The counterparty provides them with a crypto address, which the user enters in the P2P tab of the 1inch dApp”.
Users can execute the swap at the market rate or any rate the parties agreed upon. The market rate will be available through 1inch’s spot aggregator. Users also get to select a specific percentage above or below the current market rate.
The announcement adds:
“Once a P2P order has been created, the user can send it as a simple URL to the counterparty by email or via any messenger. The URL contains the P2P order signed by the sender. The counterparty fills the order and pays the gas fee”.
The Benefits of P2P Crypto Swaps on 1inch
DEX aggregator 1inch claimed that P2P service offers trustless swaps backed by smart contracts and complete decentralization. The company said that this feature will open “the door to a whole new world”.
Some of the interesting use cases include auctions and reverse auctions as well as transactions with NFT marketplaces. 1inch said that its P2P service is built atop its native Limit Order Protocol and available to all the networks that it supports. This includes the likes of Ethereum, Polygon, BNB Chain, Avalanche, and others.
The main advantage of P2P sways is that they are totally trustless with guaranteed execution via a smart contract. Another advantage is complete decentralization with data exchanges implemented by sharing URLs and bypassing 1inch’s backend.
“A P2P order can come in handy in situations when liquidity for a certain token is not sufficient for a large OTC deal or, due to low liquidity, swaps on the market would incur significant slippage,” 1inch added.