Multichain liquidity aggregator 1inch Network has added liquidity network Lumia to its list of aggregated sources.
The integration, which should deepen on-chain liquidity and provide better pricing for 1inch users, was announced on March 18.
The critical feature emphasized in the press release is Lumia’s access to centralized exchanges, such as Binance, OKX and KuCoin. An extension of liquidity should provide decentralized finance (DeFi) users with pricing that “matches or even surpasses” that of centralized platforms.
Sergej Kunz, co-founder of 1inch, said:
“1inch aims to offer users liquidity across the entire crypto market, and we are glad to welcome Lumia as a new and significant liquidity source.”
Lumia’s liquidity solution has been implemented with 1inch through a request for quote, which is a process where a customer requests a quote from a supplier (market maker) to purchase tokens. In this situation, Lumia will operate as a private market maker.
The integration will then be further enhanced by expansion to 1inch Fusion, the gasless solution developed by 1inch. Lumia will operate as a resolver, which is an approved address registered to fill 1inch Fusion orders.
A 1inch spokesperson told Cointelegraph the integration is currently fully functional on 1inch Legacy and will be completed “very soon” for 1inch Fusion.
Related: Is CeDeFiAi the missing link for seamless DeFi and CeFi interaction? Read AMA recap
The 1inch Network procures liquidity from 500 sources, with over 76 million trades and a lifetime volume of over $428 billion.
The network is governed by the 1inch decentralized autonomous organization (DAO). In January 2024, 1inch claimed to be the first DAO to hire a permanent legal team directly through the voting process.
Orion DAO introduced Lumia, its Web3 liquidity layer, in February 2024, marketing it as a go-to liquidity source for any business and a bridge between the vast liquidity of top centralized crypto exchanges and the innovation of decentralized exchanges.
In March 2024, the company hired former Binance executive U-Chyung Lim as its chief business development officer.
Speaking to Cointelegraph, Kal Ali, co-founder of Orion Protocol, specified that the Orion DAO and its tokens will move to Lumia entirely:
“The Orion DAO will be moving to Lumia DAO, and it will be way more interactive with the community.”
The decision was taken during a DAO vote, with 90% of DAO members voting in favor of the transition. Its native ORN token will be swapped to the new infrastructure token, LUMIA, in a 1:1 swap supported by all exchanges.
Magazine: South Africa’s digital-nomad crypto hub: Cape Town, Crypto City Guide