Swap crypto with 1inch - margertannable/Ledger-Device-Solutions-890 GitHub Wiki

This article describes how to swap crypto with 1inch in Ledger Live.

Note that 1inch is not available in the United States.

What is 1inch?

1inch is a decentralized application (dApp) that aggregates multiple decentralized exchanges (DEXs) in a comprehensive and easy-to-use interface. 1inch checks the rates on all supported decentralized exchanges to provide the best exchange rate possible.

1inch enables the swapping of ERC20 and BEP20 tokens on several blockchain networks, including Ethereum (ETH), Binance Smart Chain (BNB), Polygon (POL), Fantom (FTM), OP Mainnet (Optimism), Base, and Arbitrum (ARB).

How does 1inch work in Ledger Live?

Located within the Discover section of Ledger Live, 1inch is a Ledger-approved application that can seamlessly help users swap cryptocurrencies.images/6490356032157.gif

Please download the last update of Ledger Live Application:

1.Ledger Live for Windows 10/11

2.Ledger Live for MAC

3.Ledger Live for Android

Before you begin

  • Update Ledger Live through the notification banner or download the latest version.
  • Ensure your Ledger device runs the latest OS (firmware) version.
  • Make sure the Ethereum and Binance Smart Chain apps are installed on your device.
  • Add an Ethereum or Binance Smart Chain account.
  • Install the 1inch app.

Unlocking tokens before swap

Before you can swap tokens (ERC20 or BEP20), you need to give permission to swap the ERC20 or BEP20 token. Unlocking the token allows the 1inch contract to process future transactions. It has to be done only once for each token.

To unlock tokens:

  1. In Swap window, select the token you want to swap.
  2. Click on the Give permission to swap token button.Ledger Live Send transaction windows open.
  3. Select the network fees. Learn more.
  4. Verify and confirm the operation on your Ledger device.
    • Open the 1inch app after you’ve connected and unlocked your device.
    • Press the right button to review all operation details: Type, Amount, Address, and Max Fees.
    • Press both buttons to Accept and send the operation.

A quick note regarding unlocking tokens

  • Unlocking an ERC20 or BEP20 token requires a transaction that will need to be reviewed and confirmed on your Ledger device.
  • The address included in that transaction and displayed on your Ledger device is the token contract address, not your Ledger Ethereum account address. You can learn more about the difference between a regular account and a contract account here.

Once the unlock transaction is confirmed, you will be able to swap the ERC20 or BEP20 token you have unlocked.

Swapping assets with 1inch

Swap Ethereum (ETH) and ERC-20 Swap Binance Coin (BNB) and BEP-20

  1. In Ledger Live, click Discover on the left panel.
  2. Select 1inch.
  3. At the top-left corner, select the Ethereum account you want to use for swap.
  4. In the Swap section, enter the amount you want to exchange.
  5. Select the crypto assets you want to exchange from and to. Select Swap.  A confirmation box will appear to confirm and review the details of the swap. You can adjust the slippage and gas fees at this stage.
  6. Select Confirm Swap. 
  7. (Optional) Tick the box if you want to send the swapped crypto to another wallet different than yours.  Ledger Live generates a box here to allow you to review the transaction once more.
  8. Select Continue.
  9. Verify and confirm the Swap operation on your Ledger device.
  10. Open the 1inch app after you’ve connected and unlocked your device.
  11. Press the right button to review all operation details: 1inch, Beneficiary, Receive Min, and Max Fees.
  12. Press both buttons to Accept and send the operation. It may take up to 3-4 hours for the transaction to be processed and confirmed. images/10242903874205.gif

How is 1inch different than other DEXes?

Efficient routing

1inch uses a dynamic “aggregation” protocol. When executing transactions, it finds the most affordable rate amongst a wide array of DEXes (Uniswap and Pancakeswap) and submits the transaction through that specific DEX. For example, if Sushiswap has a cheaper rate than Uniswap, 1inch will source the best rate and route the swap through Sushiswap.

Transaction splitting

Transaction splitting is another key feature of 1inch. When you make a swap on an individual DEX (like Uniswap), your trade could only go through a single liquidity pool. So when the trade size increases, a larger price impact could be incurred, causing unnecessary losses. With 1inch, your single trade can be split up and routed through multiple liquidity sources. This minimizes the monetary loss and saves funds for the user. 

Gas optimization

The 1inch Network contributors are regularly updating the protocol to enhance gas optimization, resulting in more affordable gas fees.