Sergej Kunz has over 20 years of experience as a software engineer and architect. He first entered the crypto space in 2011, trying to mine Litecoin, and later built his first Ethereum mining farm in 2016. After mining for a few years, Sergej launched the YouTube channel CryptoManiac, where he conducted live security audits of smart contracts. Anton Bukov, who later co-founded 1inch with Sergej, joined one of his streams, and the two collaborated on the channel, renamed CryptoManiacs. They participated in 17 hackathons worldwide before creating a decentralised exchange aggregator MVP at a New York hackathon in May 2019.
What are the risks of centralised cross-chain solutions, and how does 1inch’s Fusion+ protocol address these issues?
Centralised cross-chain solutions pose risks like reliance on third-party custodians, potential single points of failure, and susceptibility to security breaches.
1inch’s Fusion+ uses an intent-based, atomic swap protocol that mitigates these risks by being fully decentralised and self-custodial. It eliminates third-party dependencies and ensures that swaps are completed only when both parties meet all conditions, providing security through all-or-nothing atomic swaps. This design also protects users from MEV attacks and ensures trustless transactions across chains.
How does Fusion+ integrate Dutch auctions and resolvers into atomic swaps, and what advantages does this offer to users?
Fusion+ incorporates Dutch auctions and resolvers into its atomic swap mechanism to improve overall efficiency. In Dutch auctions, prices decrease over time until a bid is accepted, potentially offering better prices to users.
Resolvers, who are professional market makers, compete to execute swaps, optimising trades based on market conditions. This combination reduces slippage, increases price competitiveness, and helps traders secure more favourable rates compared to fixed-price swaps.
With increasing cross-chain interoperability solutions, how does 1inch plan to encourage the adoption of Fusion+ and attract users?
1inch plans to onboard more resolvers into Fusion+, encouraging competition for better pricing and liquidity.
In the future, resolvers may use their services across other centralised bridges, further aggregating cross-chain liquidity and strengthening the DeFi ecosystem.
How does 1inch Fusion+ align with or differ from Uniswap’s ERC-7683 proposal in terms of functionality, design goals, and potential impact on cross-chain liquidity and DeFi?
While Uniswap’s ERC-7683 mainly focuses on interface standardisation, 1inch’s upcoming ERC proposal outlines a framework for independent operators to connect any networks, including non-EVM chains like Bitcoin.
This proposal aims to create non-custodial, trustless solutions with a clear path to competitive pricing, addressing issues around decentralisation, security, and efficiency in cross-chain liquidity.
What motivated 1inch to establish an office in Dubai, and how has working with local regulators influenced your operations?
1inch set up its Dubai office to capitalise on the region’s growing status as a crypto hub and its supportive regulatory environment.
Working with regulators such as VARA (Dubai’s Virtual Asset Regulatory Authority) ensures compliance and aligns with Dubai’s focus on blockchain innovation, allowing 1inch to expand securely in the MENA region with a regulated swap platform and self-custody solutions.
How does 1inch balance its focus on institutional services while remaining dedicated to the core principles of DeFi?
1inch is developing an institutional-grade, regulated platform for asset trading, using blockchain technology and smart contracts under VARA’s oversight. The platform enhances security through compliance with regulatory standards, while users maintain self-custody over their assets. Trades are transparent, auditable, and managed by smart contracts, giving users full control.
1inch aims to create a trusted financial platform for both institutions and individuals, fostering a secure and reliable trading environment.