1inch Pathfinder: Up to 6.5% Better Crypto Swaps & Reduced Gas Fees

The evolving landscape of decentralized finance (DeFi) continually seeks innovations to enhance user experience and transactional efficiency. A significant leap in this direction has been made with the recent upgrade to 1inch’s core routing algorithm, Pathfinder, promising a more optimized and cost-effective approach to crypto asset swaps.

Revolutionizing Swap Efficiency

1inch Labs has released an advanced Pathfinder algorithm, engineered to deliver up to 6.5% superior swap rates for digital assets. This improvement, validated by over 30,000 real-time transactions, stems from Pathfinder’s ability to identify and merge optimal transaction routes, significantly boosting efficiency and value. This refined approach also substantially reduces gas fees, a persistent barrier for many retail users navigating the DeFi space.

Complementing this algorithmic overhaul, the 1inch dApp interface has also received updates, making the swapping process even more intuitive and user-friendly. This combination of algorithmic power and user-centric design aims to provide a seamless and economical trading experience.

Key Advantages of the New Pathfinder

The updated Pathfinder algorithm introduces several critical enhancements designed to empower users and integrators:

• Maximized Returns: By leveraging multiple paths for a single swap, the algorithm ensures users achieve the best possible rates, extracting maximum value from each transaction.
• Enhanced Liquidity Utilization: The algorithm intelligently fragments swap volumes and blends routes, drawing concentrated liquidity more effectively to facilitate the most optimal trades.
• Broader Liquidity Access: It provides deeper access to a diverse range of liquidity pools, distributing volumes strategically to secure superior rates where it matters most.
• Optimized Gas Expenditure: Consolidating various swap stages and merging transaction routes significantly reduces gas costs, making DeFi more accessible and affordable.

Sergey Kunz, co-founder of 1inch, emphasized the transformative potential of this upgrade, stating, “The new Pathfinder empowers users and integrators to maximize the value of every transaction, offering up to 6.5% better swap rates and further reducing gas costs. This update sets a new standard and stimulates the industry towards true adoption by improving the experience for all.”

Under the Hood: How Pathfinder Works

The core improvement of the new Pathfinder lies in its ability to consolidate transaction paths. It seamlessly merges routes, eliminating redundant steps and selecting the most efficient market for a swap. This contrasts with previous methods that might have used separate markets for parts of a transaction, leading to higher gas costs. This sophisticated path optimization ensures gas is spent optimally, making complex swaps more economical.

Impact and Availability

1inch believes that more economical swaps are crucial for the widespread adoption of crypto assets. The new Pathfinder algorithm is a direct response to this need, lowering the barriers to entry and making DeFi more appealing to a broader audience. The updated algorithm is now live within the 1inch dApp and is also accessible via the 1inch Developer Portal API, offering enhanced routing efficiency, faster transaction speeds, and expanded integration possibilities for developers.

In a notable display of its growing influence, May 2025 saw 1inch’s market share among aggregators surge by 63%, while the number of swaps increased by 80% and active users by 59%, according to OurNetwork data. Furthermore, on May 21, the platform recorded an all-time high daily trading volume of $4.7 billion, underscoring the strong adoption and trust in 1inch’s solutions.