1inch Introduces “Spot Price Aggregator” Tool To Fetch Price Data For Display In DApps

The popular decentralized exchange aggregator “1inch” has dropped another useful tool for Web 3 and Defi developers. This time, it’s the “spot price aggregator” – a tool that extracts price data for tokens traded on multiple DEXs right from the blockchain.

This data can be incorporated right into any person’s project, using publicly available smart contract addresses and source code on Github.

What is the Spot Price Aggregator?

According to a press release shared with CryptoAdventure, the new tool works using a “liquidity weighted average” of token prices across various DEXs aggregated by 1inch. These include decentralized exchanges on Ethereum, Binance Smart Chain, Polygon, Avalanche, Optimistic Ethereum, Arbitrum, and Gnosis Chain. 

“Liquidity” refers to the amount of a given token available for trade at a specific price. This slightly differs from trading volume, which refers to the sum of trades that take place in a given period of time. Both tend to correlate, and when high, lead to accurate/ fair market prices.

When a cryptocurrency or stock is relatively liquid, it is easier for large players to enter or exit their positions without having a significant impact on market price. Nevertheless, the protocol recommends participants to use their aggregator off-chain to avoid such price effects on any token.

The new service is necessary considering that 1inch’s previous tools lack price information for many of its aggregated tokens. It’s already part of the 1inch dapp interface. The latter displays an approximate dollar value for any selected token a user wants to swap.

One can use the aggregator to display token prices within the interfaces of various other sites and user-created dApps. Users can integrate it into crypto wallets, portfolio managers, and price trackers to which such information is highly relevant. 

Previous Progress From 1inch

Earlier this month, the DEX aggregator also launched its “Earn” lending service, which allows lenders to earn 5-10% yield on their stablecoins. Its design is similar to Uniswap V3’s range orders. For instance, it allows users to provide liquidity to an AMM pool when entering a specific price range. In the future, non-stablecoins lending options will be available with the service.

1inch live price
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1inch’s limit order protocol touched $1 billion in trading volume last September. 1inch token is currently trading for $1.77, at a $738m market cap. 

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