Decentralized exchange (DEX) aggregator 1inch Network has successfully closed a $175 million Series B funding round. The investment was led by Amber Group, a global crypto finance service provider, and included participation from approximately 50 other institutional investors.
Key Investors and Funding Details
The funding round saw involvement from prominent firms such as Jane Street, VanEck, Fenbushi Capital, Alameda Research, Celsius, Nexo, Tribe Capital, and Gemini Frontier Fund. Initially targeting $70 million, the round was expanded to $175 million due to significant investor demand. This substantial financial backing highlights growing institutional confidence in decentralized finance infrastructure.
1inch operates as a DeFi aggregator that scans multiple liquidity pools to identify the most efficient token swap rates for users. By optimizing trade execution across various decentralized exchanges, the platform helps users minimize slippage and reduce transaction costs.
Strategic Goals for the Funding
Sergej Kunz, co-founder of 1inch Network, emphasized that the new capital will help bridge institutional capital with DeFi opportunities. "The next $1 trillion of assets entering DeFi will come from institutions rather than retail users," he stated. The project aims to create tailored solutions for institutional participants through new products and compliance-focused infrastructure.
A significant portion of the funds will be allocated to developing 1inch Pro—a permissioned, compliant platform designed for institutional investors in the U.S. and European markets. This service will adhere to local regulations while providing secure access to DeFi liquidity.
Additionally, the team plans to enhance the utility of the 1INCH governance token. In Q1 2022, the network intends to launch a protocol that allows users to stake 1INCH tokens as insurance coverage, earning fees while mitigating protocol risks.
Transition to 1inch DAO
1inch is currently transitioning to a decentralized autonomous organization (DAO) structure. The goal is to achieve full decentralization of both its protocols and governance mechanisms. This move is intended to democratize decision-making and increase community involvement in the network’s future development.
The expansion of the DAO will incorporate more participants, ensuring broader representation and governance influence. The team believes that increased decentralization will strengthen the network’s resilience and credibility.
Organizational Growth and Roadmap
With over 70 employees globally, 1inch plans to double its team size in the coming years. This growth will support the development of new protocols, user experience improvements, and geographic expansion.
Previous funding rounds include a $2.8 million investment led by Binance Labs in August 2020 and a $12 million raise led by Pantera Capital later that year. The latest round represents a significant milestone in the project’s evolution from a retail-focused aggregator to an institution-ready DeFi solution.
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Frequently Asked Questions
What is 1inch Network?
1inch is a decentralized exchange aggregator that sources liquidity from various DEXs to provide users with the best token swap rates. It reduces slippage and optimizes transaction costs by splitting trades across multiple platforms.
How will the $175 million funding be used?
The funds will support the development of 1inch Pro for institutional investors, expand the utility of the 1INCH token, and accelerate the transition to a DAO structure. Team expansion and protocol development are also key priorities.
What is 1inch Pro?
1inch Pro is a compliant, permissioned platform designed for institutional investors. It will offer secure access to DeFi markets while adhering to regional regulations and enterprise-grade requirements.
What is a DAO?
A DAO, or decentralized autonomous organization, is a governance structure that allows token holders to vote on protocol changes and treasury management without central authority. 1inch is transitioning to this model to become fully community-led.
How does the 1INCH token function?
The 1INCH token serves as a governance token, allowing holders to vote on proposals. Future developments may enable staking for insurance coverage and fee generation within the ecosystem.
Why is institutional investment important for DeFi?
Institutional participation brings significant capital, improved liquidity, and enhanced regulatory frameworks to the DeFi space. It also accelerates the adoption of decentralized technologies in traditional finance.
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The successful funding round underscores increasing institutional interest in decentralized finance and highlights 1inch’s role in building accessible, efficient, and compliant financial infrastructure for the future.