As explained in an update shared with CI, 1inch‘s spot price aggregator aims to make token swaps more efficient.
As noted in a release, the spot price aggregator, created by the 1inch Labs team, is a tool that “extracts price data for tokens traded on DEXes from the blockchain.”
The tool offers a liquidity-weighted average of tokens’ spot prices on multiple DEXes. In order to avoid price manipulations within a transaction, “it is recommended that the spot price aggregator only be used off-chain.”
A requirement for a spot price aggregator “arose as a solution to a specific issue: not all tokens aggregated by 1inch were supported by existing price information services.” The spot price aggregator aims “to primarily solve information-related tasks, such as visualization of token prices extracted from the blockchain in the interfaces of websites and apps.” As mentioned in the update, the tool consists of smart contracts that “communicate with various DEXes to immediately receive a token’s liquidity-weighted spot price.”
The spot price aggregator supports several different DEXes aggregated by the 1inch router and, therefore, “all tokens traded on those DEXes.” In order to handle wrapped tokens, such as wETH, cDAI, aDAI etc., the 1inch spot price aggregator “uses custom wrapper smart contracts that wrap/unwrap tokens at the current wrapping exchange rate.”
As noted in the release, if there is no direct liquidity pair that exists between two tokens, the spot price aggregator “calculates rates for those coins using another token that has pairs with both of them – a connector token.”
You may check out all the supported deployments here.
As noted in the update:
“Compared with other similar solutions, the 1inch spot price aggregator’s main advantages are support for a higher number of DEXes on Ethereum, Binance Smart Chain, Polygon, Avalanche, Optimistic Ethereum, Arbitrum and Gnosis Chain, as well as immediate display of prices without any lag.”
Although other price information tools might face lags of up to several minutes, 1inch’s tool “displays a token’s price immediately.”
The announcement also mentioned that the 1inch spot price aggregator is “used in the 1inch dApp interface.” When you enter the amount of tokens you want to swap, “an approximate US dollar value is displayed below the amount field.”
In order to get that value, the spot price aggregator “extracts the token’s liquidity-weighted price against ETH, which is subsequently converted into US dollars using CoinGecko.” In addition, the 1inch spot price aggregator is “used by the Pathfinder algorithm.”
As mentioned in the release:
“Technically, the spot price aggregator could be integrated in any place where a token price is displayed and needs to be converted into US dollar or other fiat currency. Potential use cases for the tool include crypto wallets, price trackers and portfolio managers that enable traders and investors to view the value of their tokens.”
If you want to integrate the 1inch spot price aggregator into your project, you can “find the relevant addresses here.”
If you need to execute more complex tasks related to trading, arbitrage or liquidation, “consider using the 1inch Aggregation Protocol API.”
If you want to develop your full-scale solution based on 1inch protocols, you are “entitled to funding under the 1inch Grant Program.” Details of the grant program can be accessed here.