Welcome to Slate Sunday, CryptoSlate’s weekly feature highlighting in-depth interviews, expert insights, and thought-provoking op-eds that delve into the ideas and voices shaping the future of crypto beyond just headlines.
When you ask 1inch co-founder Sergej Kunz about the direction of DeFi, expect more than the usual commentary on financial inclusion or a safeguard against fiat devaluation.
Kunz is straightforward and approaches the future of the sector like a hunter in pursuit of prey; focused, relentless, and unflinching. To him, DeFi’s future is about seamless, peer-to-peer interactions, providing a user experience so fluid that centralized exchanges become redundant.
As a leading DEX aggregator and DeFi ecosystem, recently rebranding, 1inch has integrated with Solana and launched decentralized swaps across over 12 EVM networks. With a broad smile, Kunz emphasizes:
“We understood the need to evolve; the entire DeFi landscape is no longer confined to Ethereum.”
This development signifies a shift in the industry. Initially, 1inch’s beginnings in 2019 were exclusively tied to Ethereum, riding the first wave of DeFi breakthroughs. Kunz recalls:
“Our journey began on Ethereum. It was solely Ethereum. Then we expanded to EVM-compatible chains like Binance Smart Chain, Polygon, and various layers.”
Fast forward to today, with 14 chains connected (including Solana as of April this year), it’s evident that DeFi’s boundaries are fading rapidly, and his vision of interoperable ecosystems is now realizable.
“We’ve started connecting the DeFi landscape, integrating all chains, and moving towards non-EVM compatible chains. We will incorporate Bitcoin and various blockchains for cross-chain swaps, thus uniting all liquidity in one location.”
This ambition is indeed grand. Kunz doesn’t settle for mediocrity. Why maintain fragmented liquidity when a single platform could consolidate it all?
1inch: trustless swaps and seamless execution
Kunz’s unwavering focus on cross-chain integration coincides with a keen emphasis on both security and pricing. He is adamant about user autonomy and adhering to the fundamental principles of decentralized finance (including the elimination of intermediaries).
“Our distinct value lies in non-custodial swaps, meaning that trust isn’t a requirement. Additionally, we provide the best execution across the most available liquidity.”
However, bringing liquidity together transcends technical challenges. There’s a lasting aim focused on relegating centralized exchanges to a mere footnote in crypto history. He asserts:
“In theory, utilizing 1inch negates the need for centralized exchanges.”
Kunz highlights that the brilliance of 1inch is found in its user experience, unifying it across various ecosystems and chains.
But how near are we to achieving that dream of a single-click, chain-agnostic experience that Web2 users desire?
“We’re nearly there,” he remarks. “Currently, executing a cross-chain swap requires you to connect your wallet, click, and confirm. No personal transactions are necessary.”
Intent-based protocols, or ‘solving your own problem’
Behind the scenes, innovation has been key. The 1inch protocol was developed in 2022 to ensure DeFi fairness while addressing “sandwich attacks,” the prevalent form of front-running harming liquidity providers and traders alike. He clarifies:
“We refer to it as an intent-based protocol for swaps.”
This term, ‘intent-based protocol’, has been widely mentioned recently. Uniswap X has discussed it, and notably, Kunz notes that Uniswap X draws from 1inch’s concept; it’s even referenced in their whitepaper.
“Our protocol allows us to sell user orders to market makers and arbitrage traders, facilitating competition among market makers.”
Kunz draws a parallel between 1inch’s approach and traditional exchanges like Nasdaq, where people create orders that market makers fulfill. The distinction here is directing the order straight to an open, competitive environment of professional traders who fill orders first and settle quicker. The statistics underscore this:
“We have instances where an individual exchanged 12 million USDT for Ethereum and gained an additional $135,000. If done through a DEX directly, they would have received less.”
He reminisces about his own encounter with sandwich attacks, saying:
“I fell victim to it… front-run by a deceitful exchange. And it hit me; this needs rectifying.”
Thus, he humorously notes, the intent-based protocol arose out of necessity:
“I resolved my own issue. No one can sandwich you or manipulate liquidity.”
From DeFi to the broader crypto space
The discussion shifts to stablecoins and the user experience disparities among chains. I mention that, despite advancements, DeFi remains extremely challenging for ordinary users navigating between networks and setting up wallets. He expresses that the ultimate vision is for users to remain unconcerned about networks or bridges.
“It should be the case that users don’t need to think about the chain… they should only consider what they possess in USDC.”
Looking ahead, growth is the sole certainty for Kunz.
“We unify DeFi liquidity… and subsequently, we expand into the crypto sphere. We’ll integrate Bitcoin, allowing users to purchase any kind of token, meme coin, or genuine Bitcoin, which they’ll receive in their wallet, with the ability to sell Bitcoin too. The same applies to Litecoin and Ripple.”
The vision of 1inch is clear: to transition from the “limited DeFi realm” to the expansive web3 universe, ultimately reaching traditional finance as well. He elaborates:
“Many companies today, including banks, are tokenizing real-world assets, yet there exists no central marketplace where these can be traded. You may need to approach each issuer or even visit a particular bank to acquire tokenized wine, for instance. Such services can’t be offered haphazardly. Proper regulation is essential… Our aim is to present our protocols and software service APIs for institutions to trade these assets securely and in a non-custodial manner.”
The showdown with centralized exchanges
So, what’s on the immediate horizon for 1inch? Kunz shares that the one-to-three-year strategy involves “pushing forward,” incorporating additional chains, enhancing cross-chain capabilities, and providing a more cohesive user experience. He concludes, his eyes sparkling:
“To confront, test, and compete against centralized exchanges.”
Did I mention Kunz is ambitious?
While many leaders of centralized exchanges picture a future where DeFi and CeFi coexist, the giants of decentralized finance are unyielding in their memories of being front-run.
And with centralized exchange spot volumes plummeting nearly 28% in Q2 2025, CEXs ought to remain alert. DeFi is set to take their lunch.
