1inch Launches Seamless Cross-Chain Swaps, Automating Token Wrapping

Executive Summary

DeFi aggregator 1inch has launched an upgrade enabling single-step cross-chain token swaps, automating the complex wrapping process and enhancing user experience.

The Event in Detail

On [Date of Announcement, if available - otherwise omit], 1inch implemented a protocol upgrade designed to streamline cross-chain token swaps. This enhancement utilizes 1inch’s proprietary NativeOrderFactory to automate the token wrapping process, a technical requirement previously managed by users. This automation allows for the direct exchange of tokens, such as ETH or POL, across disparate blockchain networks in a single, atomic transaction. The previous multi-step approval process has been removed, simplifying the user interface and transaction flow on the 1inch platform.

Technical Mechanics Deconstructed

Historically, 1inch, as a decentralized exchange aggregator, has leveraged wrapped tokens to facilitate efficient asset transfers and achieve optimal rates for users by routing through various liquidity sources. For instance, in a USDC to RAD trade, the 1inch v3 router would automatically convert ETH to WETH (wrapped Ether) as an intermediary before completing the swap. Wrapped tokens were also integral to 1inch's Limit Order protocol for compatible and efficient order execution. The recent upgrade signifies a shift in user interaction with this mechanic; while wrapped tokens remain a core component of the underlying architecture, the user no longer needs to manually engage with the wrapping process. The NativeOrderFactory now abstracts this complexity, performing the necessary wrapping and unwrapping operations programmatically and instantly within the single cross-chain swap transaction. This architecture eliminates the need for traditional pooled-asset bridges, which have historically been susceptible to exploits, accounting for nearly 40% of all value hacked in Web3.

Business Strategy and Market Positioning

1inch, having pioneered DEX aggregation in 2019, commanded over 60% of the DEX aggregator market by mid-2025, attributed to its Pathfinder algorithm, multi-chain support, and user-centric design. This latest upgrade reinforces 1inch's strategy to provide a seamless, non-custodial trading experience that bypasses the need for traditional cross-chain bridges. Unlike platforms that rely on separate bridge interfaces or even build their own blockchains for bridge logic (e.g., Symbiosis), 1inch focuses on native, trustless swaps. This approach aligns with a broader industry trend toward simplifying cross-chain interoperability while mitigating the security risks associated with vulnerable bridge architectures. By integrating this functionality directly, 1inch aims to maintain its competitive edge and enhance its multi-chain support, particularly following its recent push to expand Fusion+ to non-EVM chains like Solana.

Market Implications

This development from 1inch contributes to the ongoing evolution of the decentralized finance (DeFi) ecosystem, specifically addressing the challenge of fragmented liquidity across multiple blockchains. The simplification of cross-chain swaps is expected to lower the barrier to entry for new users and reduce friction for experienced traders, potentially leading to increased transaction volumes on the 1inch platform. In Q1 2025, 1inch facilitated an average of $422 million in daily aggregated trading volume, underscoring the demand for efficient DeFi routing. The broader market is witnessing a trend where decentralized exchanges (DEXs) are gaining market share; in Q2 2025, DEX spot trading volume increased by 25.3% to over $876 billion, while centralized exchanges (CEXs) saw a 28% decline. 1inch's automation of cross-chain swaps aligns with this trend by offering a direct, wallet-to-wallet exchange method that avoids the complexities and potential fees of traditional "sell to fiat, then buy again" methods or less secure bridging solutions. This move is poised to set a new standard for user experience in cross-chain transactions, fostering greater interoperability and liquidity across the Web3 landscape. The emphasis on avoiding reliance on external bridge providers positions 1inch as a more secure alternative in an environment where cross-chain bridge exploits have been a significant concern.