What is 1inch?
1inch is a decentralized exchange (DEX) aggregator protocol. DEXs allow users to exchange crypto assets without a central intermediary, and a DEX aggregator rapidly sources the best exchange rates for its users by sourcing liquidity from, and comparing quotes between, multiple DEXs at once. The 1inch platform can split a trade across multiple DEXs and supports over 80 markets and multiple chains of assets. In 2020, the 1inch network launched Mooniswap, an automated market maker, adding another layer to how it matches assets to swap.
The 1inch protocol was founded in May 2019 by Sergej Kunz and Anton Bukov, and the team raised venture funding in both August and December 2020 to fund development. In December 2020, the team also launched the 1inch DAO, decentralized autonomous organization, and its governing token, 1INCH. DAO members can participate in 1inch’s governance by voting on community proposals to make upgrades to the protocol.
What is the 1INCH token?
1INCH is an ERC-20 token that serves primarily as a governance token. Decisions on how 1inch operates and evolves over time are made by its members. 1INCH holders can stake their tokens to earn voting rights, as well as a governance reward for their participation (a portion of the swap fees applied to exchanges performed on the 1inch platform.) The weight of each user’s vote is proportionate to the number of tokens they have staked, and that weight is calculated and applied equally across the 24-hour voting period.
Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.
No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.
Wealthsimple has performed an assessment of whether 1INCH can be supported by Wealthsimple’s platform, including whether 1INCH is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.
We evaluated 1INCH based on publicly available information, including (but not limited to):
- The creation, governance, usage and design of 1INCH, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created 1INCH;
- The supply, demand, maturity, utility and liquidity of 1INCH;
- Material technical risks associated with 1INCH, including any code defects, security breaches and other threats concerning 1INCH and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
- Legal and regulatory risks associated with 1INCH, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of 1INCH; and
- Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether 1INCH, or generally about whether the type of crypto asset, is a security and/or a derivative.
Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple’s original assessment of those assets, including Wealthsimple’s assessment of the application of securities and derivatives laws. Any significant changes relating to 1INCH may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support 1INCH.
Like all other crypto assets, there are some general risks to investing in 1INCH. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.
We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading 1INCH. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.
Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).
The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
Last updated: January 1, 2024