The world of decentralized finance (DeFi) continues to evolve at a rapid pace, and 1inch is leading the charge with the release of 1inch Fusion 2.0—a powerful upgrade that redefines how users execute token swaps across blockchains. This next-generation, intent-based solution delivers faster transactions, reduced costs, and enhanced execution efficiency, making it one of the most advanced swap mechanisms in the crypto space today.
By eliminating gas fees for users and leveraging a competitive resolver network, 1inch Fusion 2.0 ensures optimal pricing and robust protection against maximal extractable value (MEV)—a persistent threat in decentralized trading environments.
The Evolution of Intent-Based Swaps
Introduced in December 2022, 1inch Fusion pioneered an innovative intent-based model where users express their desired outcome—such as swapping one token for another—without needing to manage execution details. Instead, professional traders known as resolvers compete to fulfill these intents using sophisticated strategies and deep liquidity access.
Since its launch, nearly 20 verified resolvers have participated in the ecosystem, collectively executing over $25 billion worth of swaps. These resolvers source liquidity from across the entire crypto market, ensuring users receive superior rates compared to traditional on-chain trades.
👉 Discover how intent-based trading can maximize your swap returns
How Partial Fills Boost Efficiency
One of the standout features of 1inch Fusion is its partial fill functionality, which allows large orders to be split and executed across multiple blocks by different resolvers. This approach minimizes price impact and often yields better effective rates than executing a single large trade.
For example, consider a user swapping 5,436 WETH to USDC. Within just one minute, 11 partial fills were completed by various resolvers—each handling between 8.5% and 30.1% of the total amount per block. Thanks to Fusion’s Dutch auction model and dynamic execution, the user received 40,524 more USDC than they would have at the prevailing market rate.
This isn't just theoretical—it's real-world performance driven by intelligent design and competitive market dynamics.
To maintain compliance and security, all resolvers undergo rigorous due diligence, including KYC verification, sanctions screening, and ongoing AML monitoring. This creates a trusted environment where professional market makers can operate efficiently while protecting end users.
What’s New in Fusion 2.0?
With 1inch Fusion 2.0, the protocol takes a major leap forward in efficiency, speed, and reliability. The upgrade introduces architectural improvements that streamline the swap process and deliver tangible benefits for both large and small traders.
Direct Resolver Interaction for Better Pricing
Previously, swap settlements went through a centralized settlement contract layer. In Fusion 2.0, this has been replaced with a lightweight settlement extension, enabling users to interact directly with resolvers. This reduces overhead and allows resolvers to offer tighter spreads and improved rates.
Internal benchmarks show that Fusion 2.0 reduces settlement costs by 10% to 35%, depending on token pair and volume. Compared to competing protocols, this translates to roughly 10% greater efficiency, giving 1inch a clear edge in the DeFi landscape.
Even users conducting smaller swaps benefit from this optimization, as lower operational costs allow resolvers to profitably serve a broader range of transaction sizes.
Faster Execution and Reduced Order Expiry
Speed matters in volatile markets. One of the most common frustrations for DeFi users is order expiration due to fluctuating gas prices between transaction signing and execution. 1inch Fusion 2.0 tackles this issue head-on with a groundbreaking innovation: dynamic price curve adjustment based on real-time gas conditions.
Solving the Gas Volatility Problem
In earlier versions, if the base fee (network gas price) increased after a user signed their transaction, resolvers might delay or skip execution due to unprofitability. Conversely, if gas prices dropped, resolvers could capture the difference as arbitrage profit—without passing it on to users.
Fusion 2.0 eliminates this inefficiency by adjusting the execution price curve in response to changes in base fee:
- If gas prices drop: The user receives more output tokens.
- If gas prices rise: The execution cost is recalibrated so the resolver can still fulfill the order without delay.
This adaptive mechanism ensures that orders are executed 75% faster on average and significantly reduces the likelihood of expiration. It's a win-win: users get timely executions, and resolvers maintain profitability under varying network conditions.
👉 See how smart execution models outperform traditional swaps
Seamless Integration with Developer-Friendly Tools
For developers and platforms looking to integrate high-efficiency swaps, 1inch offers the Fusion SDK—a comprehensive toolkit for constructing orders and interfacing with the Fusion API. The updated SDK makes integration smoother than ever, allowing dApps to embed Fusion-powered swaps with minimal effort.
The 1inch Developer Portal provides full documentation, code samples, and support for building custom solutions powered by Fusion technology. Teams interested in integrating the API can reach out directly through official channels to begin implementation.
Meanwhile, retail users can already access Fusion 2.0 via the 1inch dApp, where they can perform gas-free swaps with MEV protection and superior pricing.
Frequently Asked Questions (FAQ)
Q: What is an intent-based swap?
A: An intent-based swap allows users to declare what they want (e.g., "swap X amount of ETH for DAI") without specifying how it’s done. The protocol then finds the best way to fulfill that intent using professional resolvers.
Q: Do I pay gas fees when using 1inch Fusion?
A: No. One of the key benefits of Fusion is that users never pay gas fees for their swaps—the resolvers cover them as part of their execution cost.
Q: How does 1inch protect against MEV?
A: By keeping user transactions off-chain until execution and using private order routing through trusted resolvers, 1inch prevents front-running and other toxic MEV strategies.
Q: Can anyone become a resolver?
A: No. Resolvers must pass strict KYC, compliance checks, and ongoing monitoring to ensure trustworthiness and regulatory adherence.
Q: Is Fusion 2.0 available on all blockchains?
A: Currently, Fusion supports major EVM-compatible chains, with plans for expansion based on demand and ecosystem development.
Q: How does partial filling improve my swap rate?
A: Large trades suffer from price impact when executed all at once. Partial fills spread the trade across time and venues, reducing slippage and often achieving better average prices.
Unlock Next-Gen Swap Performance
1inch Fusion 2.0 represents a paradigm shift in decentralized trading—combining cutting-edge architecture, economic incentives, and user-centric design to deliver unmatched swap efficiency.
Whether you're a trader seeking better rates or a developer building the next generation of DeFi applications, Fusion 2.0 offers powerful tools to optimize performance, reduce costs, and enhance user experience.
👉 Start leveraging advanced swap technology today
With continuous innovation and a commitment to security and compliance, 1inch is setting new standards for what’s possible in decentralized finance. Experience the future of swapping—efficient, fast, and built for real-world results.