The aggregator 1inch Labs has introduced an updated version of the Pathfinder algorithm, which allows for an increase in the efficiency of crypto asset swaps to 6.5%.
This is reported by Business • Media
- The updated algorithm provides better rates for token exchanges.
- It optimizes routes by merging them, reducing gas costs.
- Changes have also been made to the dApp interface, enhancing the user experience.
Benefits and Key Features of the New Pathfinder
According to the developers at 1inch Labs, the new version of the algorithm finds optimal exchange routes faster than its predecessor. Additionally, the system reduces gas costs through the consolidation of swap stages and the most efficient use of liquidity pools.
The updated design of the decentralized application has made the exchange process clearer for users. Together, these innovations have led to an increase in rate efficiency to 6.5%, as confirmed by the analysis of over 30,000 real transactions using the new algorithm.
“The new Pathfinder enables users and integrators to maximize the value of each transaction, offering up to 6.5% better swap rates and further reducing gas costs. This update sets a new standard and drives the industry towards true adoption, enhancing the experience for everyone,” said project co-founder Sergey Kuntz.
- Maximizing Revenue: The algorithm provides the best rates by utilizing multiple paths for exchanging crypto assets, increasing the value of each transaction.
- Liquidity Efficiency: The new approach allows for volume distribution across different routes, using concentrated liquidity to optimize outcomes.
- Broader Access to Liquidity: The algorithm expands access to various pools and optimizes volume distribution to achieve the most favorable rates.
- Efficient Gas Usage: Merging routes significantly reduces gas costs during each swap.
How the Updated Algorithm Works: Examples and Features
Using the example of exchanging USDC for the APE token, the 1inch team demonstrated the differences between the old and new versions of Pathfinder. Previously, different markets had to be used for each route, leading to higher gas costs. With the new algorithm, routes have been consolidated, noticeably lowering fees and making exchanges more profitable.
Eliminating unnecessary steps in the swap process allows Pathfinder to find the optimal market for transactions more quickly and save resources.
At 1inch, it is emphasized that more economical solutions for swaps are necessary for the widespread adoption of crypto assets. The updated Pathfinder provides such opportunities.
The latest version of the algorithm is already available in the 1inch dApp and via the API on the developer portal, opening new possibilities for integration and increasing transaction speeds.
In May 2025, 1inch’s market share among aggregators grew by 63%, the number of swaps increased by 80%, and the number of users rose by 59%. On May 21, the daily trading volume on the platform reached a record $4.7 billion.