The 1inch Network, a leading decentralized finance (DeFi) protocol, has successfully raised $175 million in a Series B funding round. This substantial investment was led by Amber Group, with participation from other prominent firms including Gemini, Nexo, and Celsius Network.
This new capital will be used to accelerate the protocol's development and decentralization efforts, primarily by supporting the transition towards a fully functional 1inch DAO (Decentralized Autonomous Organization). A key goal is to make the platform more accessible to institutional investors through the rollout of its professional offering, 1inch Pro.
Strategic Goals for the Funding
The injection of $175 million marks a significant milestone for the 1inch ecosystem. The development team has outlined a clear roadmap for utilizing these funds to drive growth and innovation.
Advancing Decentralization and DAO Development
A primary objective is to further decentralize the network's operations and governance. The funds will be channeled into strengthening the 1inch DAO, empowering the community to have a greater say in the protocol's future direction and key decisions.
Bridging Institutional Adoption with 1inch Pro
A major focus will be on developing and marketing 1inch Pro, a tailored solution designed for institutional players. This initiative aims to serve as a secure and compliant gateway for traditional finance institutions to enter the DeFi space, providing them with the professional tools and liquidity they require.
Expanding the Ecosystem and Team
The capital will also fuel the creation of new protocols within the 1inch suite and enhance the utility of its native 1INCH token. Furthermore, the company plans to double its team size over the next few years to support these ambitious expansion plans. The initial fundraising target was set at $70 million but was significantly increased due to overwhelming demand from investors, reflecting strong confidence in 1inch's vision.
A Look Back: Recent Developments and Milestones
The network's growth trajectory has been notable. In September, the platform recorded over $7 billion in total transaction volume from its users, underscoring its widespread adoption.
In a strategic move ahead of a new product launch, the platform began restricting access to users based in the United States by blocking IP addresses. This was described by the team as a necessary step to prepare for the compliant introduction of new services tailored for the U.S. market.
Frequently Asked Questions
What is the 1inch Network?
The 1inch Network is a decentralized exchange (DEX) aggregator that scans multiple liquidity sources to provide users with the best possible trade rates. It is a key infrastructure project within the DeFi ecosystem, helping users optimize their cryptocurrency swaps.
What will the $175 million investment be used for?
The funds will be used to advance decentralization through the 1inch DAO, develop new protocols, expand the utility of the 1INCH token, and launch 1inch Pro to onboard institutional investors. A portion will also go toward significant team expansion.
What is 1inch Pro?
1inch Pro is the professional version of the 1inch platform being developed specifically for institutional investors. It is designed to provide a secure and compliant gateway for traditional finance entities to access DeFi liquidity and advanced trading tools 👉 Explore more strategies for institutional DeFi entry.
Why did 1inch block U.S. users?
The restriction of U.S.-based users via IP blocking was a temporary, strategic measure. The team stated it was in preparation for the launch of a new, compliant product specifically designed for the U.S. market, ensuring they adhere to local regulatory frameworks.
Who were the main investors in this round?
The funding round was led by Amber Group, a prominent global crypto finance firm. It also saw participation from other major industry names including the exchanges Gemini and Nexo, as well as the crypto lending platform Celsius Network.
How does this funding benefit the average DeFi user?
While aiming to attract institutions, 1inch remains committed to its existing DeFi community. The funding will lead to a more robust, secure, and feature-rich ecosystem for all users, with better rates, new protocols, and a more decentralized governance model.