Tokens are digital assets built on top of a blockchain network and represent a specific value or utility. These tokens can be used for a variety of purposes, such as representing a share in a company, providing access to a particular service, or serving as a medium of exchange on a decentralized platform.

The 1INCH token is both a governance and utility token. Launched on Christmas eve of 2020, it can be staked to achieve Unicorn power, which can then be used for both governance and resolving delegation.

Within the 1inch wallet, only listed tokens are shown. These are tokens that have gone through a specific vetting process, outlined here.

Please note: Only EVM compatible tokens can be stored. These are a specific type of token that is designed to be compatible with the Ethereum-standard blockchains, and can be used on any application that runs on such networks.

Staked tokens are digital assets that are locked in a smart contract protocol for a predetermined amount of time. They can often be used for governance voting, earning yield (APY), and liquidity mining (yield farming) purposes.

With 1inch Network, you can stake 1INCH tokens to earn rewards and Unicorn power. Once staked, your tokens cannot be unstaked/withdrawn without penalty until the designated lock period expires. The default lock period for staking is 2 years.

The rewards for staking 1INCH tokens comes from a few places:

As time progresses, the penalty for unstaking 1INCH tokens decreases. Also, the longer the lock period, the more Unicorn power is received at the time of staking. Similar to the withdrawal penalty, the amount of held Unicorn power also decreases with time.

A chart outlining the decrease in both Unicorn power and withdrawal penalty

This category covers multiple types of assets, which are designed to act as a store of value.

Yield bearing tokens

These provide holders with a steady stream of income (APY) in the form of additional tokens or value. These tokens are often issued by decentralized finance (DeFi) platforms as a way to incentivize users to participate in their protocols and provide liquidity to the platform.

Lending protocols

These tokens are decentralized applications (dApps) that run on blockchain networks and allow users to lend and borrow assets in a trustless and transparent manner. These protocols typically use smart contracts to automate the lending process, and they can often be accessed through a variety of DeFi platforms. These protocols typically use smart contracts to automate the lending process, and they can often be accessed through a variety of DeFi platforms.

Synthetic assets

This type of digital asset is backed by a combination of underlying assets and are designed to mimic the price and performance of a particular asset or index. These assets are often created using smart contracts and decentralized finance (DeFi) protocols, and they can be traded on various cryptocurrency exchanges. Synthetic assets offer investors a way to gain exposure to a particular asset or market without having to hold the underlying asset itself.

LP tokens, or liquidity provider tokens, are a type of cryptocurrency token that is used to represent an individual's share of a particular pool of assets on a decentralized finance (DeFi) platform. In return for providing liquidity to the platform, the individual receives "LP tokens" that can be traded on secondary markets or used to earn rewards.

The value of LP tokens is tied to the value of the underlying assets in the liquidity pool, and the tokens can be redeemed at any time for their share of the assets in the pool. Please note: If your balance of LP tokens decreases over time, you may have experienced impermanent loss.

The difference between whitelisted and custom imported tokens on the 1inch wallet is that whitelisted tokens are officially supported by the 1inch wallet, while custom imported tokens are are manually added by the user. Custom tokens are unverified and have not been vetted by 1inch Network's token listing process.

A non-listed token on the 1inch wallet is a cryptocurrency that is not officially supported by the 1inch wallet. These tokens have not been vetted or approved by the 1inch team, or they may not be widely known or used.
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Both non-listed and possible scam tokens can be risky for investors, as they may be more susceptible to fraud and may not have the same level of security or support as officially supported tokens. Investors should exercise caution when dealing with non-listed and possible scam tokens, and should always thoroughly research any token before investing.

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To help users research the reputability of a particular token, 1inch has partnered with several community-led initiatives (including tokenlist.org) to maintain a list of reputable DeFi tokens in an inclusive and decentralized way.

This token "Safety List" is comprised of multiple lists that you can easily view by simply clicking on any token in your portfolio.
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