Decentralized exchange (DEX) aggregator 1inch revealed a new feature that allows users to swap their digital assets cross-chain while retaining self-custody of the assets. 

The “Fusion+” feature combines both onchain and offchain liquidity to deliver swaps. 1inch claims the feature has built-in protection against maximal extractable value (MEV) attacks. 

The feature is powered by atomic swap technology, which, according to 1inch, is designed to support “all-or-nothing” transactions. If a swap fails, all the funds are returned to the sender. 

The swaps are also governed by smart contracts, verifying all the swap conditions. This means the transfers are trustless and do not need third-party approvals.

In decentralized finance (DeFi), cross-chain transfers require bridges. These bridges allowed users to transfer assets from one blockchain to another. However, bridges caused massive losses because of their vulnerabilities. With 1inch’s new feature, cross-chain swaps can happen without a bridge.

How the new cross-chain swap feature works

1inch also explained how the swap works by giving an example. 1inch said that if a user holds POL tokens on Polygon, they can exchange them for Ether ( ETH ) on the Ethereum blockchain. This means that users can exchange tokens on the same blockchain and on completely different networks. 

1inch explained that users simply need to enter their order details in a form. This will be shared with “resolvers,” who 1inch describes as professional traders competing to execute swaps at the most favorable rates. 

After this, a Dutch auction begins where the price decreases until the order is accepted by a resolver. Then, the resolver puts the POL tokens into an escrow contract on Polygon using the 1inch Fusion order. The resolver also deposits ETH into an escrow on Ethereum using the same conditions. 

Once the contracts are active onchain, the resolver will unlock the ETH for the user and claim the POL tokens on the Polygon blockchain. 

While the process seems long, it also has a timelock protection feature. This feature cancels swaps not completed within the designated time, returning funds to the original owner. 

Related: 1inch partners with Blockaid to combat DeFi fraud and cyber threats

1inch first revealed the details of its solution to cross-chain interoperability issues on Sept. 12, when it published a white paper about the intent-based, cross-chain interoperability protocol it was developing. 

The paper came as interest in cross-chain solutions heightened when Ethereum co-founder Vitalik Buterin revealed plans to solve cross-chain interoperability between Ethereum layer-2s.

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