The brand new feature boasts 5 different safety audits, and will allow users to purchase or sell assets at specific price targets on Ethereum, BSC, and Polygon. The new feature will also have the ability to interact with intelligent contract logic, and have the ability to execute orders based on oracle data.
Limit orders were available to the DeFi ecosystem via a variety of protocols such as Gelato and 0x, the latter that 1inch utilized. However, the group claims this new protocol will be gas-efficient and protected since it doesn’t want admin keys, and that the protocol may add extra value to the ecosystem through composability with other protocols, such as Uniswap v3.
While the Protocol instantly increases the functionality of this 1inch exchange, there are multiple potential use cases that outside teams have been encouraged to research.
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„On top of this protocol, complex, customized market making instruments could be built,“ reads the announcement. „For example, a instrument of that kind would facilitate earning a pair of resources pegged to the same money, like USDC and DAI, that can be both pegged to the US dollar.“
In addition to clear program in trading or DEX environments, 1inch co-founder Sergej Kunz pointed towards a potential lending use instance.
„Lending Formula liquidations could be implemented by utilizing our new protocol. When a position is prepared to be liquidated, just a limit order can be set from the lending protocol clever contract to provide arbitragers to swap the security amount for the debt token via a coordinated and highly efficient interface / protocol,“ he explained.
The Limit Order Protocol isn’t the only brand new release from 1inch. Yesterday, Curve announced the launch of a new algorithm that enables the protocol to make pools for volatile assets. 1inch was noted as an early associate of the new functionality, with 1inch’s liquidity aggregation using this Curve TriCrypto pool at launch.
