We announced the news about Linea for PancakeSwap today. Shortly after that, 1inch news for Base arrived. DeFi platforms are trying to mitigate the effects of bear markets by expanding their operations to newly emerging and popular networks. These justified moves suggest that competition could intensify even more.
1inch Network has launched a decentralized exchange aggregation protocol and limit orders on Ethereum Layer 2 network Base. The protocol will source liquidity from decentralized exchanges such as Uniswap, Balancer, SushiSwap, and Base Swap to optimize user swap rates. In addition, the limit order protocol will allow Base users to transact at desired prices and execute the trade only when the market price matches their specified value.
Sergej Kunz, co-founder of 1inch Network, said:
“Base is a very promising Layer 2 solution and it is incubated by a major player like Coinbase.”
1inch has solidified its leadership position in the DEX aggregation space by processing over $1 billion in trading volume in just the past week. The protocol is already integrated with Optimism, Arbitrum, and zkSync Era Layer 2 networks, and supports Ethereum, BNB Chain, Avalanche, and others.
In the multi-chain world, we will see popular applications operating on 10, maybe even 20-25 different blockchains. Although this situation may negatively affect the future of smart contract tokens, it will expand the alternatives for crypto investors. Moreover, thanks to increased competition, users will benefit from lower fees and faster transaction confirmations.
Base mainnet was officially launched on August 9th and has surpassed 100,000 daily active users. As a new network, Base has attracted significant attention, and the latest data indicates that it has hosted more transactions compared to prominent Optimistic rollup scaling solutions such as Arbitrum and Optimism. On August 23rd, Base reached 813,000 transactions, while Arbitrum had 646,000 and Optimism had 469,000 transactions in the same period.
Last week, Compound joined Uniswap and SushiSwap as one of the first DeFi protocols launched on Base. Yesterday, USDC issuer Circle announced that the stablecoin will be integrated with Base in September.
So, will Base network conduct an airdrop? Coinbase stated in its initial announcement that this will definitely not happen. Moreover, it would not be very logical for Coinbase to do so while it is already in trouble with the SEC. In airdrops, a significant portion of the supply is allocated to the team, early-stage institutional investors, and rewards. If Coinbase were to do such a thing before regulatory clarity is established, it would not be able to prove its legitimacy against the SEC in court. Furthermore, releasing a cryptocurrency, which can be considered as its own token, by a publicly traded company could also negatively impact the future of its stock.