In Brief:
- 1Inch network launches investment tool dubbed Earn pool optimized for stablecoins.
- Earn is expected to improve the network’s sustainability and increase its decentralization.
- Users’ earnings from 1inch Earn are expected to be in the 5–10% APY range at the time of its launch.
1Inch network announced the launch of an investment tool titled ‘Earn,’ a set of liquidity pools optimized for Stablecoins.
1inch Earn works on a similar model to Uniswap V3 range orders, with earnings derived from fees on swap trades in the pool.
Earn is expected to be a significant step toward improving the overall network’s sustainability and increasing its decentralization and community-led governance.
The concept behind 1inch Earn is to make better use of capital in AMM-based pools for stablecoin swaps. 1inch Earn enables liquidity providers to focus their assets on price intervals lesser than zero and infinity.
“1inch Earn enables liquidity providers to concentrate their assets to smaller price intervals than between zero and infinity. For instance, it could be in a range between 0.99 and 1.01. In that case, traders get deeper mid-price liquidity for swaps, and liquidity providers earn more fees,” the announcement notes.
After the confirmation of the transaction, a user immediately begins earning yield in the form of both tokens deposited to the pool. Users’ earnings from 1inch Earn are expected to be in the 5–10% APY range at the time of launch, with future profitability dependent on the market situation.
The very first pool on the Ethereum network has been launched, comprising the USDC/USDT pair. Pools with stablecoins are best suited for conservative earning strategies in times of crypto market volatility and are more resistant to slippage.
Last December 1inch raised $175 million in a Series B funding round led by Amber Group. The newly raised funds will assist to expand protocol utility as well as improve access to liquidate with DeFi.
