1inch

References

[1IP-19] Increase the Number of Whitelisted Fusion Mode Resolver to 10

Simple Summary

This proposal seeks to introduce a dynamic Fusion mode resolver whitelist in the 1inch Network. This whitelist would be determined by whether a resolver has received delegations of 10% or more of the total Unicorn Power in the network.

Abstract

If passed, this proposal will transition the resolver whitelist for 1inch Fusion mode from a static to a dynamic system. To qualify for the whitelist, a resolver must have received delegations equating to 10% or more of the total Unicorn Power in the network. The maximum limit of resolvers on the whitelist will remain ten (10).

Motivation

The previous move to increase the number of resolvers to ten was intended to foster competition and provide users with better rates. However, this has led to the current scenario where the number of high-quality resolvers is fewer than the spots on the whitelist.

Transitioning to a dynamic whitelist based on Unicorn Power delegations encourages greater competition among resolvers as they will need to gather enough delegated UP to hit the 10% threshold.

Specification

This proposal serves as a signal from the 1inch Network DAO to 1inch Labs. If the proposal is passed, the 1inch Network DAO calls for 1inch Labs to implement a dynamic whitelist for Fusion mode resolvers, based on a Unicorn Power delegation threshold. Resolvers will need at least 10% of the total network UP in order to be whitelisted.

Rationale

User benefits: This proposal aims to revive the competition among resolvers, ensuring that only the most efficient and committed resolvers participate in the Fusion mode, thereby enhancing service quality. Fewer resolvers reduces gas costs for settlement – improving rates for the user.

Resolver benefits: Limiting the number of resolvers to only the most effective ones will concentrate the rewards among fewer participants, incentivizing more Unicorn Power delegation.

Considerations

1inch Fusion mode has already been audited and deployed. This proposal is anticipated to have no negative security implications as it merely seeks to adjust the number of participants in the first four minutes of the Dutch auction.