Transferring assets across different blockchains has always been a problem in the DeFi space, with slow speeds, high fees, and plenty of security risks. But 1inch is changing all that with the release of its Fusion+ upgrade. A solution that eliminates the need for risky cross-chain bridges and makes swapping tokens across chains faster and more secure.
Prior to now, the process of transferring assets across different networks has been marred by high fees, slow speeds, and a host of security concerns. Cross-chain bridges, while functional, have been the target of major hacks. This has created a barrier to DeFi adoption, with many users looking for safer, more efficient alternatives.
Why Cross-Chain Transactions Are a Problem
For many, cross-chain transactions have felt like a necessary evil. While they enable users to move assets between various blockchains, the process is far from smooth. Bridges have been a common tool, but these often expose users to hacks — with over $2.8 billion in user funds being compromised in recent years due to vulnerabilities in bridge infrastructure alone. Adding to the complexity, methods like atomic swaps, while technically effective, remain too complex for the average user to understand or use.
Despite these challenges, the DeFi sector is booming. Analysts predict a compound annual growth rate (CAGR) of 46.8% for the industry from 2024 to 2032. But for this growth to be sustainable, DeFi platforms need to overcome the interoperability issue and make cross-chain transactions easier and more secure.
Fusion+: Revolutionizing the DeFi Experience
Fusion+ tackles these challenges head-on with its innovative, user-friendly approach. The system prioritizes the user’s goal or “intent” over the transaction process itself. Instead of navigating the technical complexities of multiple blockchains, users simply define their desired outcome — whether it’s swapping tokens or completing a transfer — and let the system handle the rest.
This intent-based model removes the burden of managing technical details, allowing the platform to manage things like transaction timings and potential risks, such as Maximum Extractable Value (MEV) attacks. At the same time, Fusion+ utilizes professional market makers called resolvers to execute transactions, ensuring users are shielded from potential errors and inefficiencies.
How Fusion+ Works: The Bridge-less Revolution
Traditional cross-chain bridges rely on intermediaries, making them vulnerable to hacks and failures. Fusion+ eliminates this dependency, instead relying on atomic swaps — a process that uses smart contracts and cryptographic locks to ensure secure transactions without third-party involvement. If a transaction fails, the system guarantees that assets are returned to the user, thanks to a fail-safe mechanism.
The platform integrates liquidity from multiple blockchains like Ethereum, BNB Chain, and Polygon, allowing users to execute swaps across these networks seamlessly. Additionally, Fusion+ uses a Dutch auction mechanism to determine optimal transaction rates, fostering competition among resolvers to provide the best deal for users.
One of the most user-friendly features is gasless execution. Instead of users having to manage transaction fees, these costs are incorporated into the overall swap, ensuring a smooth, hassle-free experience.
A Simple, Secure Process
Here’s how it works for users:
1. Initiate the Swap: Users select the tokens they want to exchange and the networks involved. A Dutch auction helps find the best possible rates.
2. Lock the Funds: The resolver locks the user’s assets in escrow on the source chain, while simultaneously securing equivalent assets on the destination chain.
3. Complete the Swap: Once the cryptographic conditions are met, the assets are exchanged, and users receive their desired tokens.
4. Timelock Protection: If the swap isn’t completed within the set time, assets are automatically returned to the user, ensuring there are no losses.
The Future of DeFi is Here
With Fusion+, 1inch is redefining the cross-chain experience. By simplifying transactions, enhancing security, and prioritizing user needs, the platform is paving the way for broader adoption of DeFi solutions. There’s no need for complicated setups — users can start swapping tokens immediately via the 1inch Wallet and dApp. Select your tokens, confirm the transaction, and let the system do the rest.
As Fusion+ continues to expand, the potential for a truly decentralized, secure, and accessible financial ecosystem is closer than ever.