🌎 1inch DEX Launches Fusion+ for Secure Cross-Chain Crypto Swaps

Decentralized exchange 1inch has introduced a significant upgrade that allows users to swap their crypto assets while retaining custody. On September 18, 1inch announced the deployment of the latest iteration of its 2022 Fusion upgrade, known as Fusion+.

Features of Fusion+

The new Fusion+ feature enables users to swap cryptocurrencies across multiple blockchain networks while maintaining full self-custody of their tokens. Additionally, it pools both on-chain and off-chain liquidity to ensure convenient and secure swaps. Fusion+ also offers built-in protection against maximal extractable value (MEV) attacks.

Powered by atomic swap technology, Fusion+ ensures that cross-chain transactions are secure, trustless, and efficient, avoiding the vulnerabilities typically associated with traditional cross-chain bridges.

Understanding Atomic Swaps

An atomic swap allows for the exchange of cryptocurrencies between two different blockchains without needing a trusted third-party intermediary. The term “atomic” signifies that the transaction either occurs in its entirety or not at all.

Fusion+ leverages this “all-or-nothing” principle, meaning if any part of the transaction fails to meet the conditions or is incomplete, the assets are automatically returned to their original owners. Governed by smart contracts, the process ensures that all preconditions, such as time limits or asset amounts, are met by both parties.

The transaction either happens in its entirety or not at all.

How Fusion+ Works

The swap process begins with a user sharing their order details with resolvers, who are professional traders competing to execute swaps at the best rates through a Dutch auction model. The resolver then locks the user’s tokens into an escrow contract and deposits the corresponding amount of the other token into a separate escrow contract. Both contracts contain the same secret hash and conditions.

Once both contracts are active on-chain, the parties reveal the cryptographic secret, the tokens are swapped, and the user receives the new asset. If either party fails to meet the set conditions, the assets are returned to their respective owners.

1inch initially disclosed its plans to introduce Fusion+ on September 12, citing issues like the security risks of centralized cross-chain bridges, inefficiencies in decentralized solutions, and the complexity of current cross-chain processes.