Cross-chain swaps: what problems does 1inch solve?

In this post, we are discussing the most common problems of existing cross-chain swap solutions and how 1inch Fusion+ is solving them.

Liquidity is fragmented across various Web3 ecosystems, which presents problems for users who want to make swaps across various blockchains. Various cross-chain bridges and other solutions are being developed to address the interoperability issue, as the market for cross-chain swaps continues to grow.

In 2023-2024, the total amount of funds moved between various chains reached tens of billions of dollars. However, the existing solutions for cross-chain swaps are far from being perfect.

Bridges are the most common solution for cross-chain swaps, but they have several notable drawbacks. Usually, bridges are centralized, which makes them dependent on a single authority. Fees for using cross-chain bridges are in many cases high. Also, bridges are generally vulnerable to hacks. Over the last couple of years, the lion’s share of attacks in which funds were stolen occurred on bridges. Finally, bridges are often inconvenient to use, as specific bridges may support only specific chains. Similarly, insufficient liquidity on a certain chain could make a swap impossible. 

Other types of cross-chain swap solutions also have many disadvantages. In most instances, they are slow, expensive, unsafe for large swaps or too complex. As a result, users trying to use these solutions are faced with bad UX, long waiting times and high fees.

To address the cross-chain swap challenge, 1inch recently introduced Fusion+, an enhanced version of its intent-based crypto swap solution that integrates advanced atomic swap technology. Fusion+ resolves issues seen in other cross-chain solutions.

Fusion+ is a decentralized, self-custodial solution offering gasless swap execution and highly competitive rates. Swaps are filled by resolvers - professional market makers who compete to execute the transaction, which ensures favorable pricing.

Additionally, the intent-based architecture of 1inch Fusion provides MEV protection, shielding users from maximal extractable value exploits.

Finally, liquidity is aggregated from across the Web3 ecosystem, eliminating the risk of swap failure due to insufficient liquidity on a particular chain.

Try cross-chain swaps in the 1inch dApp now!