1inch Liquidity Protocol

The 1inch Liquidity Protocol is an automated market maker (AMM) that is aimed to boost protocol liquidity and employ virtual balances to reduce temporary loss. Users can benefit by contributing tokens as liquidity on the 1inch platform through a process known as “liquidity mining,” in which traders send assets such as ETH to a specific pool, lock it in, and earn 1INCH, the platform’s native token, as interest. This strategy is comparable to native DEX currencies such as Uniswap’s UNI in that it encourages community-based liquidity supply.