Topics Altcoins
Bybit Learn
Bybit Learn
Intermediate
Feb 17, 2022

1Sol Protocol (1SOL): Maximizing Cross-Chain Efficiency

Decentralization has arguably become one of the major driving forces of innovation in recent years. The need for interoperability, speed and efficiency has become paramount to the growth of decentralized finance (DeFi), with DeFi and DeFi-related terms gaining tremendous attention and application recently.

Just as blockchain exists to eliminate various forms of human financial interference, the purpose of the cross-chain is to eliminate interference between decentralized bodies. This unique feature also enables the up-and-coming 1Sol protocol to build a highly functional and effective aggregator for decentralized exchanges (DEXs).

Let’s look at how the 1Sol protocol maximizes cross-chain efficiency to create a faster, better and cheaper experience for its users — and how it enables better transactions and trading options for DeFi platforms.

What Are DEX Aggregators?

In order to truly grasp the workings of the 1Sol platform and what it seeks to achieve, it’s crucial to understand what DEX aggregators are. 

The rise in the adoption of cryptocurrencies has set the stage for decentralized exchanges to flood the market. However, it can be difficult to find the best deals on trading pairs, as there are many price lists and DEXs to sift through. This growing usage of DEXs has created the need for aggregators. As its name suggests, a DEX aggregator trawls the internet, accumulates data from numerous DEXs, and aggregates data to enable split trades and find the best deal available. 

Depending on their core focus and size, different blockchain networks can decide whether to integrate DEX aggregators into their structure. For instance, as a blockchain that supports DeFi, Solana is growing steadily and has even launched its own DEX aggregator.

What Is the 1Sol Platform?

1Sol is a DEX aggregator built on a cross-chain, a technology that enables information sharing between blockchain networks (interoperability), particularly for decentralized protocols on Solana. Sol.io’s aim is to become a big liquidity pool for everything CeFi, DeFi and OTC as it continues to gain acceptance and adoption from investors and the public. 

1Sol didn’t start from scratch. It built on aggregators that preceded it, leveraging a multi-blockchain (i.e., cross-chain) technology to generate more liquidity and expand the existing market into the realm of DeFi. 

Solana has among the fastest current transaction speeds, which gives 1Sol a starting advantage to run effectively as a cross-chain DEX aggregator. 

What Is 1SOL?

1SOL is the native utility token of the 1Sol protocol. According to CoinMarketCap, Solana currently stands as the 8th-largest cryptocurrency in the world, six spots below heavyweight Ethereum and seven spots below crypto OG Bitcoin. The Solana blockchain enables many decentralized financial transactions, giving users the ability to swap tokens and a variety of digital assets.

The projection for the Solana ecosystem points towards phenomenal growth. Essentially, as the trading volume of decentralized exchanges increases on Solana, so will the need for DEX aggregators. The early introduction of a cross-chain DEX aggregator like 1Sol will definitely be beneficial for Solana’s growth. 

1Sol’s goal is to become the number one trading portal of choice on Solana as the need arises — offering smoother, faster and more secure DeFi experiences. 1Sol has already begun its journey with top projects on Solana, aggregating Serum, RaydiumOrca and Saber

What Is the 1Sol Protocol Used For?

The 1Sol protocol is designed to save users time, stress and money. It maximizes a peer-to-peer network to share orders and find a cheaper route for orders across all available exchanges.

Instead of manually searching through DEXs and placing trades, the 1Sol protocol trawls available DEXs to find the best deal for users through swapping token prices and fees, enhancing slippage and automating trade executions. 

1Sol also drastically reduces gas fees on Solana by utilizing its 1Sol Smart Calculator, which runs on the advanced Dijkstra algorithm. This algorithm maps out the best swapping route among DeFi, CeFi, different swaps and OTC markets.

How Does the 1Sol Protocol Work?

1Sol offers greater trading volume, asset diversity and liquidity by using advanced algorithms that enable cross-blockchain trades. The working system of the 1Sol protocol can be simplified into four steps: initializing accounts, a smart calculator, swapping, and returning. 

The user begins with creating accounts alongside a ready gas fee. The 1Sol Smart Calculator then compares prices among available DEXs to find the best deal/route. The user picks the best fit, confirms a transaction and executes the swap. After this process is completed, the maximum amount of tokens swapped is returned to the user.

(Editor’s Note: the description above is a simplified version of the complex processes the algorithm actually handles in real time, when an order is placed.)

Key Features

The structure of the 1Sol platform is designed to guarantee maximum profitability. Following are some of its key features:

Fee Reduction 

Using 1Sol in transactions on the Solana mainnet reduces the split percentage.

Governance 

1Sol allows its users to contribute to decision-making by voting for newly connected swaps and markets.

Farming 

Users can profit from 1SOL liquidity pools and yield farming.

Cross-Chain Discount

1Sol helps users reduce cross-chain loss through the 1Sol cross-chain token bank. 

Combining all the features of the 1Sol protocol translates into savings of time and money, with money saved distributed to 1Sol users. Since 1Sol has a governance feature, 1Sol holders get to decide on the distribution blueprint and the appropriate percentages through voting.

1SOL Tokenomics

Note: Figures below are accurate as of this writing, and are approximated up to two decimal places.

Total Supply — 100 million 1SOL tokens

Maximum Supply — 100 million (100% of total supply)

Circulating Supply — Not Available

Market Capitalization — Not Available 

24-Hour Trading Volume — $63,569

Price — $0.65 per 1SOL token

Trade 1SOL on Bybit now!

Pros and Cons of the 1Sol Platform (1SOL)

Pros

  • Interoperability

The adoption of cross-chain technology as a base for the 1Sol DEX aggregator gives it a unique advantage over other DEX aggregators, as it can work between blockchains to aggregate the best deals for users.

  • Transaction Speed 

Solana arguably processes transactions faster than the majority of other networks. This speed is an added advantage for those who use the 1Sol DEX aggregator, as they can do more in a shorter time.

  • Cheaper Fees 

One of the aims of the 1Sol aggregator is to automatically find the best deals for its users, instead of manually going through the sea of DEXs available. 

  • Automated Orders

Another advantage of 1SOL is its automation of orders, which saves users the hassle of having to place orders manually.

  • Adoption

The 1Sol DEX aggregator is now considered the native DEX aggregator of the Solana network. This identity gives it a huge boost, as every noteworthy project on Solana will look to incorporate it.

  • Liquidity Pool 

1Sol automatically increases available liquidity. Its capacity to work trans-blockchain widens its scope to include DeFi, CeFi and OTC markets.

Cons

  • Outlook 

Right now, all looks good with 1Sol. However, considering that its aggregator was launched only in Q4 2021, there may be loopholes we’ve missed out on or have yet to identify.

Is the 1Sol Platform Trustworthy?

1Sol is currently working with four top projects on the Solana network. The fact that it’s been incorporated into these projects demonstrates the faith being put into it. Apart from 1Sol’s team having a lot of experience and expertise, it also has the backing of powerful investors.

Is the 1Sol Protocol a Good Investment?

This is a tricky question to answer right now. While some analyses point to 1SOL being a short-term investment, experts agree that in the long run, HODLing it is a decision that will likely bring returns.

The 1Sol platform is currently positioned in a niche that’s not only fast-growing, but has created a solution for a need that will eventually skyrocket. Overall, 1Sol seems like a promising investment.

Buying 1SOL

1SOL can be purchased on popular and reliable cryptocurrency exchanges like Bybit. You can purchase the 1SOL token on Bybit by following the steps below.

Step 1

You need to become a registered Bybit user to buy or sell any cryptocurrency on its exchange (please skip to Step 2 if you’re an existing member). If you don’t have an account yet, you can create one in a matter of minutes. The first thing to do is visit the official Bybit website and click on Sign Up

You can register using your mobile number or email ID. Then, create a secure password and complete the registration process by confirming the password. Once you click on Continue, your account registration process will be completed.

Step 2

It’s mandatory to complete the verification process so you can start making transactions on the exchange. The process is quick and straightforward. Make sure to present a valid photo ID proof for personal verification and a government-issued ID, such as a driver’s license or passport to verify your residential address. After you click Submit, you’ll receive a confirmation email regarding the verification.

Step 3

The 1SOL token is paired with USDT on the Bybit exchange. Therefore, you must hold USDT in your wallet to make the purchase. If you don’t have any USDT, you can buy USDT using the crypto or fiat currency you already hold. 

Visit the Buy Crypto section, choose your preferred fiat currency, select USDT under the drop-down menu, and pick the fiat payment gateway to make the purchase. You can also transfer your existing USDT tokens from an external wallet, or any other crypto exchange wallet, to your Bybit wallet.

Step 4

Visit the Spot Market section and search for the 1SOL/USDT pair. As illustrated in the screenshot below, you’ll see a trading terminal and Buy/Sell zones. You can use limit, market or conditional orders to place a trade.

If you use a market order, the trade will be executed at the market price, which could incur slippage. Therefore, we recommend using a limit order. Pick the price at which you want to enter the market, and the quantity of 1SOL tokens you want to purchase. 

Once the token reaches your preferred price, your order will execute, and the corresponding 1SOL tokens will be transferred to your wallet. All details related to your ongoing trade, such as unrealized P&L, can be viewed at the bottom of the trading terminal.

1SOL
Source: Bybit | 1SOL/USDT

Step 5

For any crypto investor, it’s crucial to secure your tokens after making your purchase. If your intention is to trade 1SOL to take advantage of the crypto’s volatility, you can store your tokens in an exchange wallet. If you’ve bought a large amount of 1SOL, however, we recommend cold storage — that is, transferring your tokens to a hardware wallet. 

Closing Thoughts

Although many crypto projects have lofty ambitions, the ones which are truly viable are few and far between. The 1Sol protocol seems to have cracked its own code. The whole idea of a cross-chain DEX aggregator is feasible, not to mention timely and in the right niche. Although 1Sol is still new, there’s plenty of optimism surrounding the project, and certainly a lot to look forward to in the months and years to come.