1inch Sold 11,000 $ETH to Test Fusion Mode, Says Co-Founder

At around 1pm UTC on July 5, an address belonging to 1inch sold approximately 11,000 $ETH, which raised concerns within the crypto community. According to The Block, 1inch co-founder Sergej Kunz confirmed that the transactions were to test the DEX aggregator's Fusion Mode.

1inch swapped the 11,000 $ETH to $DAI, then to MakerDAO's interest bearing token $CHAI. Kunz said, "our team is testing the new feature in Fusion mode. It's possible to use custom preset to set duration, start and end auction amount. This kind of strategy is very helpful for rebalancing assets (for DAOs, Hedge and Investment Funds). Based on the results, the trade was executed with better average rate compared to just a market swap."

Additionally, in response to a comment on Twitter, Kunz said 1inch would also test "in reverse direction", which is to buy back $ETH below the on-chain market price using Fusion Mode.

1inch rolled out the Fusion upgrade last December to enhance its swap engine, connecting users to liquidity providing professional market makers. The upgrade aimed to allow more cost-efficient transactions with added security.