There are a couple ways to put your tokens to work on the 1inch Network. These methods consist of:

Liquidity Providing

As it sounds, liquidity providing is the act of sending a pair of tokens to a liquidity pool and locking them for any period of time. Rewards are distributed in the form of the underlying tokens (i.e. 1inch and WXT tokens). The APY for a liquidity pool varies based on the number of transactions going through the pool, in addition to the total amount of liquidity provided to it.

Please note: The displayed APY for all liquidity pools can be calculated with:

(current_liquidity/(current_liquidity - profit_last_24_hours))^365

Liquidity rewards can begin accruing immediately upon locking the tokens in the pool; however, know that impermanent loss could offset gains and may cause a negative rate of return.

As a provider, you’ll need an equal ratio (50/50) of each token to provide to the pool, in addition to any ETH or BNB needed for transaction gas fees. Liquidity pools operate indefinitely (as long as they have liquidity) and there are no time limits for deposit or withdrawal. Once the liquidity is provided, you will receive “LP Tokens” as a placeholder for your liquidity.

***Please note: If your "Provided liquidity" amount is less than the amount you initially provided, you may have experienced impermanent loss.

Referral rewards

Referral rewards are another way to earn passive income while promoting the growth of the 1inch network. Once you connect your wallet, a unique link will be created that you can share with family, friends, Twitter followers, or anyone else who might be interested in swapping on 1inch. Each time they make a swap, a small % of their trading fee will accumulate (in the form of 1inch tokens) for you to claim.

The referral reward amount is voted upon by the community, and is distributed to referrers on a weekly basis. If a referee’s trade was routed through other protocols (Liquidity Sources), you may also receive a part of the spread surplus if available.

Anyone can get their own referral link by simply connecting a supported wallet to the 1inch interface.

Did this answer your question?