Popular decentralized exchange aggregator 1inch has announced a partnership with Coinbase’s Ethereum Layer 2 network, Base. This collaboration will involve the deployment of 1inch’s Aggregation Protocol and Limit Order Protocol on the Base network. The integration of 1inch into the Base ecosystem aims to enhance liquidity by leveraging the 15 decentralized exchanges already operational on the network, including Uniswap, Balancer, SushiSwap, and Base Swap.
By utilizing swap rates from various DEXs, the 1inch limit order protocol enables investors to strategically execute buy and sell orders at predetermined values, in contrast to the instant common price conversions offered by decentralized exchanges. Sergej Kunz, co-founder of 1inch Network, expressed enthusiasm for the partnership, stating that Base “is a very promising L2 solution” incubated by Coinbase, and both parties are aligned in their goal to onboard the next billion users to blockchain.
1inch also emphasized the benefits of the Base blockchain, including Coinbase product integrations and easy fiat onramps, which will extend to projects within the ecosystem. However, it is worth noting that Coinbase recently announced the discontinuation of trading Tether USDT, Dai DAI, and RAI stablecoins for Canadian users, citing non-compliance with the company’s listing standards following their latest reviews.
With a trading volume exceeding $1 billion in the past week, 1inch dominates the DEX aggregation sector. The protocol’s integration extends beyond Base to notable Layer 2 networks like Optimism, Arbitrum, and zkSync Era, while maintaining compatibility with Ethereum, BNB Chain, Avalanche, and other blockchains.
Meanwhile, the Base Network has been gaining momentum since its launch on August 9th, attracting numerous decentralized applications. The platform has surpassed 100,000 daily active users, driven in part by the buzz around Friend.tech, a tokenized social network that allows access to private chats based on an account’s “key” holders. Additionally, Base’s Onchain Summer initiative, featuring Coca-Cola’s “Masterpiece” NFT collection, has contributed to the platform’s success.
Operating on the Base network, Ethereum Layer 2 has outperformed other prominent scaling solutions like Arbitrum and Optimism in terms of daily transactions. As of August 23rd, Base’s seven-day average for daily transactions reached 813,000, surpassing Arbitrum’s 646,000 and Optimism’s 469,000, even surpassing Ethereum’s daily transaction volume. However, it should be noted that meme coin transactions currently dominate the DeFi sector, including a significant portion of Base’s trading activity.
Notably, fake Friend.tech tokens represented 50% of Base’s trading volumes, totaling $48.8 million out of a total of $79.7 million, according to Dextools. The recent addition of Compound to the Base network further enhances its growth trajectory. Circle, the issuer of the USDC stablecoin, also announced its integration with Base on August 23rd, with plans for expansion to six additional blockchains scheduled for September.