Executing orders with 1inch to receive full refund of gas fees

Ideas
#1

Hi guys, one quick idea - what are your opinions?

1inch is refunding users who stake 100k+ 1inch token 100% of the gas fees paid. They distribute 10mln tokens, so it will be going on for a while as only 53 wallets have this required amount staked -> https://etherscan.io/token/0xA0446D8804611944F1B527eCD37d7dcbE442caba#balances

If the treasury would buy / borrow this required amount and execute fulcrum orders via 1inch - there could be enormous saving potential, which can be added to treasury or passed to the users.

https://blog.1inch.io/the-1inch-foundation-will-distribute-10-mln-1inch-to-the-defi-community-as-gas-cost-refunds-2dd35a6a084f

Is it a viable idea? Is it worth the effort?

#2

It’s a very interesting idea. I think the savings might be significant on the Ethereum main chain (especially when volume improves), but basically non-existent on BSC or Polygon (in fact we are already going to allow gas free trades on Polygon using the money Matic/Polygon gave the project for launching on Polygon). It will also not be that important on OE/Arbitrum.

However, there might be technical issues - as I understand it the Fulcrum contracts are designed to interact directly with Kyber as a liquidity source (on Ethereum) and soon Uniswap etc - I’m not sure they are setup to be able to interact with the 1inch contracts - it will probably involve significant development work, which I’m not sure the team has capacity for right now.

The money itself is not a problem - the DAO can easily afford it.

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#3

Yes, if it is not too much work and effort to realize it.
I just imagine the results like this: optimal trading routes for less slippage and being able to offer refund of the fees on Layer1!

#4

I am not supportive of this proposal. The acquisition of 1INCH would be roughly $270k at the current prices which are bound to change and factoring liquidity, it will likely be more so that is something to keep in mind. Along with this, the route selector is proprietary and it is unclear how to utilize it on other front ends. The savings are nice on the surface but to properly distribute back to the traders that earned it would require added logic to track trading volumes of each user and handling the airdrops. Along with this, the swap itself is only 10% of the total gas used for trades on a margin trade so it is only a 10% save for users. The better execution is a huge benefit that should not be ignored but that is something I am working actively working on where users will be able to choose different DEXes to execute on and standardizing the implementations for each dex so the supported list can be expanded as needed. All in all, the benefit of using 1inch is that executions will be far better but the routing generator that is used is not open source and the drawbacks of buying the token for gas savings is it is minimal savings for users as a percentage of gas usage and opens up the risk of volatility on another protocol’s token. Plus, the 10 million 1inch may get used very quickly on refunds.

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#5

I think that pretty much puts the nail in the coffin on this, although it’s an interesting idea.

The key blockers that are new to me, seem to be:

-The 10 million 1INCH is likely to get used up very quickly so this will be a very short term benefit

-The swap is only 10% of the gas costs of the margin trade so users will only get a 10% discount on gas, and not gas free trades as I initially thought.

So clearly not worth doing this.

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