1INCH SEEKS TO OPTIMIZE GAS COSTS WITH ITS NEW V5 ROUTER

Last updated: June 19, 2025, 22:25 | Written by: Sam Bankman-Fried

In the ever-evolving landscape of decentralized finance (DeFi), efficiency and cost-effectiveness are paramount.Gas fees, the transaction fees paid to miners on blockchain networks like Ethereum, have long been a significant hurdle for users engaging in DeFi activities.High gas fees can make even small transactions prohibitively expensive, hindering wider adoption.Recognizing this critical challenge, 1inch Network, a leading decentralized exchange (DEX) aggregator, is poised to release its latest innovation: Router v5. Here are some examples of the new router s improved gas efficiency. With the 1inch Router v5, a 100,000 USDC swap into USDT through a Uniswap v3 pool turned out to be 4% more gas efficient than with the 1inch Router v4, 8% more gas efficient than with the second best performing player in the DEX segment and 24% more efficient than otherThis upgrade promises to significantly reduce gas costs for users, making DeFi more accessible and profitable. In the Router v5, 1inch estimated that swaps will be approximately 5% more gas efficient than in the previous version, and 10% more gas efficient, compared to the second best performing player in the DEX segment.With Router v5, 1inch aims to optimize the DeFi experience, tackling the issue of exorbitant gas fees head-on. Customers of the decentralized exchange (DEX) section would reportedly pay gas charges for swaps that are at least 10% less than those of 1inch s prior offers, making switching activity on the Ethereum network more lucrative for its users. In the Router v5, 1inch predicted that swaps would be 10% more gas efficient compared to the second-bestThe new router boasts an improved smart contract error and incorporates enhancements designed to minimize gas consumption during swaps. According to 1inch, users gas costs for swaps will be at least 10% lower than its previous offerings in the DEX segment, thereby, making swapping activity on the Ethereum network more profitable for its users. In the Router v5, 1inch estimated that swaps will be approximately 5% more gas efficient than in the previous version, and 10% moreIn essence, Router v5 is engineered to make swapping tokens on the Ethereum network a smoother, cheaper, and more efficient endeavor for all participants.

Introducing 1inch Router v5: A Game Changer for DeFi Gas Costs

The DeFi market is constantly seeking ways to improve user experience, and 1inch Network is at the forefront of this innovation.Their latest offering, the Router v5, directly addresses one of the most significant pain points for DeFi users: high gas fees.This upgrade isn't just a minor tweak; it's a substantial overhaul designed to optimize gas usage across various swap scenarios.By streamlining the routing process and implementing more efficient smart contract logic, Router v5 promises to deliver significant savings to users executing trades through the 1inch platform.

What Makes Router v5 Different?

Router v5 introduces several key updates that contribute to its improved gas efficiency.These enhancements are not just theoretical; they've been tested and proven in real-world scenarios.Some of the core differences and improvements include:

Optimized Smart Contract Logic: The underlying smart contracts have been rewritten and refined to minimize the computational resources required for each swap.This translates directly to lower gas consumption.
Improved Error Handling: Router v5 features enhanced error handling mechanisms, preventing failed transactions that still incur gas costs. Here are some examples of the new router s improved gas efficiency. With the 1inch Router v5, a 100,000 USDC swap into USDT through a Uniswap v3 pool turned out to be 4% more gas efficient thanThis is a crucial improvement, as failed transactions can be a significant source of wasted gas.
Smarter Routing Algorithms: The routing algorithms have been fine-tuned to identify the most gas-efficient paths for each swap, considering factors like liquidity, network congestion, and the specific tokens involved.

Quantifying the Gas Savings: Real-World Examples

The claims of improved gas efficiency are backed by concrete data and real-world examples. 1inch has conducted extensive testing to demonstrate the savings that users can expect when using Router v5.According to 1inch's estimates, users can anticipate gas costs for swaps to be at least 10% lower than with its previous router versions.

A Practical Example: USDC to USDT Swap

Consider a common DeFi transaction: swapping 100,000 USDC into USDT through a Uniswap v3 pool.With the 1inch Router v5, this swap has been shown to be:

4% more gas efficient than with the 1inch Router v4.
8% more gas efficient than with the second-best performing player in the DEX segment.
24% more efficient than other DEX aggregators.

These figures demonstrate the substantial savings that users can realize by utilizing Router v5, particularly for larger trades.

Why Gas Optimization Matters in DeFi

Gas optimization isn't just a technical nicety; it's a fundamental requirement for the continued growth and adoption of DeFi. According to 1inch, users' gas costs for swaps will be at least 10% lower than its previous offerings in the DEX segment, thereby, making swapping activity on the Ethereum network more profitable for its users. In the Router v5, 1inch estimated that swaps will be approximately 5% more gas efficient than in the previous version, and 10% more gasHigh gas fees create a barrier to entry for many potential users, particularly those with smaller trading budgets.Moreover, excessive gas costs can make certain DeFi strategies, such as arbitrage or yield farming, unprofitable.

The Impact of High Gas Fees

High gas fees can have a detrimental impact on the DeFi ecosystem in several ways:

Exclusion of Small Traders: Users with smaller portfolios are often priced out of DeFi, as the cost of gas can exceed the potential profits from their trades.
Reduced Trading Volume: When gas fees are high, overall trading volume tends to decline, as users become more hesitant to execute transactions.
Concentration of Wealth: High gas fees can disproportionately benefit larger players who can absorb the costs more easily, leading to a concentration of wealth within the DeFi ecosystem.
Hindered Innovation: Developers may be discouraged from building innovative DeFi applications if they are concerned that users will be deterred by high gas fees.

How Router v5 Addresses These Challenges

By significantly reducing gas costs, Router v5 directly addresses these challenges and contributes to a more inclusive and vibrant DeFi ecosystem.The lower fees make DeFi more accessible to a wider range of users, encouraging greater participation and innovation.This in turn leads to a more robust and decentralized financial system.

The Competitive Landscape: 1inch vs. 1inch seeks to optimize gas costs with its new v5 routerOther DEX Aggregators

The DEX aggregator space is becoming increasingly competitive, with multiple platforms vying for users' attention. 1inch has consistently distinguished itself through its focus on innovation and user experience. Highlights of the week $SRM forked by developers after FTX hack $ADA plans to release new blockchain and token. Nike launches Web3 platform Swoosh on $MATIC $TWTThe release of Router v5 further solidifies 1inch's position as a leader in the DEX aggregation market.

Comparing Gas Efficiency

While other DEX aggregators also offer gas optimization features, 1inch's Router v5 appears to be a significant step forward in terms of efficiency.As demonstrated by the example of the 100,000 USDC to USDT swap, Router v5 consistently outperforms its competitors in gas consumption. According to 1inch, users' gas costs for swaps will be at least 10% lower than its previous offerings in the DEX segment, thereby, making swapping activity on the Ethereum networkThis advantage can translate into substantial savings for users, particularly those executing frequent or large trades.

Beyond Gas Optimization: Other 1inch Features

In addition to its superior gas efficiency, 1inch offers a range of other features that make it an attractive choice for DeFi users:

Aggregation Across Multiple DEXs: 1inch aggregates liquidity from a wide range of DEXs, ensuring that users can always find the best possible prices for their trades.
Pathfinder Algorithm: 1inch's Pathfinder algorithm intelligently routes trades across multiple DEXs to optimize for price and slippage.
Limit Orders: 1inch allows users to place limit orders, enabling them to execute trades at specific price levels.
Gas Token Support: 1inch supports the use of gas tokens like CHI and GST2, which can further reduce gas costs.

How to Take Advantage of 1inch Router v5

Taking advantage of the gas savings offered by Router v5 is straightforward. DeFi protocol 1inch is looking to optimize gas costs with its new v5 router. The DeFi market, like the rest of the crypto market, is still recovering from the turmoil in the aftermath of the FTXOnce the update is live, users will automatically benefit from the improved efficiency when executing swaps through the 1inch platform. According to 1inch, users gas costs for swaps will be at least 10% lower than its previous offerings in the decentralized exchange (DEX) segment, thereforeNo special actions or configurations are required.

Steps to Use 1inch:

Visit the 1inch Website: Go to the official 1inch website (1inch.io).
Connect Your Wallet: Connect your preferred Web3 wallet, such as MetaMask, Trust Wallet, or Ledger.
Select Your Tokens: Choose the tokens you want to swap and the amount you want to trade.
Review the Trade: Carefully review the trade details, including the estimated gas cost and the expected output.
Confirm the Transaction: If you are satisfied with the trade details, confirm the transaction in your wallet.

Tips for Maximizing Gas Savings

While Router v5 automatically optimizes gas usage, there are a few additional steps you can take to further minimize your gas costs:

Trade During Off-Peak Hours: Gas fees tend to be lower during periods of low network congestion, such as late at night or early in the morning.
Use Gas Tokens: Consider using gas tokens like CHI or GST2 to reduce your gas costs.
Adjust Gas Prices (Advanced): If you are comfortable with adjusting gas prices manually, you can try setting a lower gas price to save money. According to 1inch, users gas costs for swaps will be at least 10% lower than its previous offerings in the decentralized exchange (DEX) segment, therefore making swapping activity on the Ethereum network more profitable for its users. In the Router v5, 1inch estimated that swaps will be approximately 5% more gas efficient than in the previous version and 10% more gas efficient, comparedHowever, be aware that this may result in slower transaction confirmation times.

The Future of Gas Optimization in DeFi

Router v5 represents a significant step forward in gas optimization, but it's unlikely to be the final word on the subject.The DeFi ecosystem is constantly evolving, and new technologies and approaches are emerging that could further reduce gas costs.

Layer-2 Scaling Solutions

Layer-2 scaling solutions, such as Optimistic Rollups and ZK-Rollups, offer a promising path towards lower gas fees and faster transaction times. Decentralized exchange (DEX) aggregator, 1inch, is set to release its latest router; Router v5. The company said that Router v5 promises to make users DeFi experience more convenient by reducing gas costs for swaps.These solutions process transactions off-chain and then bundle them together before submitting them to the main Ethereum chain.This can significantly reduce the gas costs associated with each individual transaction.

EIP-1559 and Beyond

The implementation of EIP-1559 on Ethereum has already helped to stabilize gas fees to some extent.Further upgrades to the Ethereum network, such as sharding, could potentially lead to even lower gas costs in the future.

Continued Innovation from 1inch

1inch is committed to continued innovation in the area of gas optimization.The company is actively researching and developing new techniques to further reduce gas costs and improve the user experience.It's likely that future versions of the 1inch Router will incorporate even more advanced gas optimization features.

Conclusion: 1inch Router v5 – A Win for DeFi Users

The release of 1inch Router v5 is a significant development for the DeFi ecosystem. 1inch seeks to optimize gas costs with its new v5 router . Buy, Sell, Trade Bitcoin with Credit Card 100 Cryptocurrencies @ BEST rates from multiple sources, Wallet-to-Wallet, Non-Custodial!By significantly reducing gas costs, Router v5 makes DeFi more accessible, affordable, and profitable for a wider range of users. 1inch seeks to optimize gas costs with its new v5 router Buy, Sell, Trade Bitcoin with Credit Card 100 Cryptocurrencies @ BEST rates from multiple sources, Wallet-to-Wallet, Non-Custodial! 1inch seeks to optimize gas costs with its new v5 routerThe proven gas savings compared to previous versions and other DEX aggregators, coupled with other robust 1inch features, solidify its position as a top contender in the space.This innovation exemplifies 1inch's commitment to improving the DeFi experience and driving the adoption of decentralized finance. The Router v5 is the newest router by DEX aggregator 1inch. The business said that by lowering gas prices for swaps, Router v5 will make consumers experiences with decentralized finance (DeFiUsers can expect at least a 10% reduction in gas costs compared to previous iterations, and the practical example of the USDC to USDT swap demonstrates the real-world savings potential. According to 1inch, users gas costs for swaps will be at least 10% lower than its previous offerings in the decentralized exchange (DEX) segment, therefore making swapping activity on the Ethereum network more profitable for its users. In the Router v5, 1inch estimated that swaps will be approximately 5% more gas efficient than in theKey takeaways include: lower gas fees, improved accessibility, and increased profitability for DeFi participants. 1inch Router v5 represents a significant step towards a more inclusive and efficient DeFi future, empowering users and fostering innovation within the ecosystem.Be sure to check out 1inch.io to experience the benefits of Router v5 firsthand!