DeFi aggregator 1inch on Wednesday sold 11,000 ETH (about $21 million) while testing its latest protocol update. The upgrade was on its latest swap platform, Fusion, the Block first reported.
“Our team is testing the new feature in Fusion mode. It’s possible to use custom preset to set duration, start and end auction amount,” 1inch co-owner Sergej Kunz noted. “This kind of strategy is very helpful for rebalancing assets (for DAOs, Hedge and Investment Funds),” he continued.
A Few Moments of Uncertainty
1inch users were left bemused after the aggregator moved a staggering $21 million out of the exchange. The decentralized exchange (DEX) aggregator first moved the funds to a 1inch v5 aggregator router, then to an unknown wallet, before converting it to wrapped Ethereum.
The sale sparked many reactions on crypto Twitter, with many users insinuating that 1inch has massively dumped its token bags. A user made reference to the Ethereum Foundation sell-off before an adverse market downturn, stating, “Hopefully, they are worse traders than eth foundation.”
The FUD on 1inch, however it came, didn’t impact the price of the token, as it steadied above $0.3 all through the uncertainty period before Kunz clarified the reason for the transaction.
A Successful Test
Kunz noted in his remarks about the transaction that the Fusion test went well. He stated that the trade was executed at a better average rate compared to just a market swap. The aggregator has continued to test various features of the Fusion upgrade to improve its user experience.
Launched in December, Fusion complements 1inch’s Swap Engine and helps connect users to liquidity. The addition of Fusion allowed for a more cost-efficient, secured transaction on the network.
