1inch DAO governance after adopting the 1IP-28 proposal has discontinued support for swap surplus collection. As announced in a blog post today, the DAO aims to improve swap rates and make them attractive. Consequently, enhancing the network to enjoy sustainable development.
According to the announcement, the discontinuation of the swap surplus collection will as well make better the cost efficiency of swap on the network. Further, 1inch revealed that with the termination, the network will be equipped to focus more on its long-term growth.
In the blog post, 1inch described the Swap Surplus as a result of a unique market occurrence known as “positive slippage.” This refers to the positive difference in a token swap rate between the time of submitting the transaction and the time of its confirmation. The announcement stated that the positive difference is referred to as a swap surplus.
However, on the negative side, calculating swap surplus mandates extra call data and computation. Due to that, the calculation will require additional gas. This additional gas will then reflect in the final amount the user will receive. So, the discontinuation as established by the firm will benefit individual users. Also, it will extend to all users of the 1inch network.
The co-founder of 1inch, Sergej Kunz further provided more insight into the development. In his words, the co-founder said, “I totally welcome the 1inch DAO’s decision to discontinue swap surplus collection.” Additionally, Sergej Kunz applauded the community for the discontinuation.
The co-founder stated that the community made the right choice and the development will aid the long-term growth of 1inch. Sergej Kunz added that it will further increase the protocol’s market share.
Side note about 1inch
Meanwhile, 1inch in recent times has focused on enhancing users’ experience. On March 22, 2023, 1inch proposed the creation of an NFT marketplace aggregator. Then, the firm intended to onboard more users to its network by making the NFT marketplace aggregator free of charge for users.
Then, the protocol revealed that the NFTs marketplace aggregator will be powered by Solidarity.io. Due to that, the project embraced an open-source model to suit the goal of the 1inch community.
Meanwhile, 1inch will focus on offering users the best swap rate. The protocol disclosed that its aggregation protocol as gas optimization has helped in pursuing the goal. In the announcement, the project further emphasized that it will continue to offer free swap services for users.