1inch Network is a decentralized exchange (DEX) aggregator to help users discover the best trade prices for tokens. Instead of swapping tokens from a single liquidity pool of a DEX, 1inch will aggregate across different pools and suggest the most efficient way to trade tokens.
This liquidity search is done via Pathfinder which is the discovery and routing algorithm developed by the 1inch team. It is the algorithm that powers the backend to find the most efficient route to swap a token. Pathfinder will explore all DEXes such as Uniswap, Curve, Balancer, DODO, Sushiswap, and more. The result is a recommended route that optimizes fees and liquidity to give users the best rate. Users no longer need to check each service to find the best price.
The 1inch DAO token is the governance and utility token of the 1inch Network. 1inch holders can stake their tokens to participate in the 1inch Network’s DAO governance, including the 1inch DAO Treasury management. Also, propose updates to the 1inch protocol, such as how fees are structured and distributed across platform users.