Sergey Kunz and the Strategy of Global Cross-Chain Integration: How 1inch Is Redefining DeFi Rules

Sergey Kunz, co-founder of the decentralized aggregator 1inch, envisions the future of financial networks quite differently from most of his colleagues in the crypto industry. For him, DeFi is not just an alternative to centralized exchanges but a revolution that will render competitors completely obsolete. His approach is not only ambitious but also methodical in implementing this vision.

Since its founding in 2019, 1inch has undergone a fundamental transformation—from a platform operating solely on Ethereum to a global aggregator covering more than 12 EVM-compatible networks and recently integrating Solana. This evolution reflects Kunz’s philosophy: the boundaries of DeFi are blurring every week, and separate ecosystems no longer make sense.

The Evolution of 1inch: From Local Network to Global Platform

The development history of 1inch shows how industry leaders adapt to the changing crypto landscape. It all started simply: in 2019, during DeFi’s first wave of innovation, 1inch focused exclusively on Ethereum. This was the right strategy for its time.

However, Kunz quickly realized that focusing on a single network was a dead end. The gradual expansion began with integrating EVM-compatible blockchains: Binance Smart Chain, Polygon, and other Layer 2 solutions. By April 2025, the platform added Solana, marking a transition to a qualitatively new level—into the world of non-EVM ecosystems.

This expansion was necessary for a simple reason: fragmented liquidity results in worse execution for users. If a trader wants the best price, they have to check dozens of platforms. 1inch solved this problem centrally, becoming a platform that consolidates liquidity from different networks into a single point of interaction.

Architecture of Non-Custodial Swaps: The Principle of Best Execution

1inch’s core value proposition is built on two pillars. The first is non-custodial swaps, where users do not transfer control over their funds to anyone. The second is liquidity optimization to achieve better prices than any individual DEX could offer in isolation.

The practical results speak for themselves. Documented cases show users exchanging $12 million USDT on Ethereum and gaining an advantage of $135,000 solely through optimal routing via the aggregator. Direct trading on DEXs would have yielded significantly worse results. These are not just numbers—they demonstrate why consumers choose 1inch over going directly to individual DEX platforms.

The key metaphor Kunz uses to describe this system is borrowed from traditional finance. On Nasdaq, market makers compete by executing orders. 1inch applies the same concept in a decentralized context: user orders are transmitted into an open ecosystem of professional traders and market makers competing to execute them under the best conditions.

Intent-Based Protocol: Born from Necessity

In 2022, Kunz faced a problem common across DeFi: sandwich attacks. The essence of the phenomenon is simple—front-runners see mempool transactions, place their own order ahead of the user’s, and then another behind it to profit from the price movement caused by the original order. Kunz experienced this attack firsthand and decided it was unacceptable.

The result was an intent-based protocol—an innovation that later inspired Uniswap to develop Uniswap X (as noted in their whitepaper). The idea was revolutionary: instead of the user executing a transaction themselves and risking attack, the protocol transmits the intent (the desire to swap tokens A for B) to specialized executors. They compete to fulfill this order under the best terms.

Thus, a closed ecosystem of professional traders emerges, through which end-user orders pass. No one can insert their order ahead of the user’s—this system eliminates that possibility. Kunz didn’t just solve his own problem; he created a standard that became the foundation for a whole class of innovations in DeFi.

From Fragmented DeFi to Integrated Crypto Space

Current market realities confirm Kunz’s strategic vision. Trading volumes on centralized exchanges decreased by nearly 28% in the second quarter of 2025—a figure reflecting increasing competition from decentralized solutions. CEXs are no longer perceived as the only path for traders.

However, 1inch’s plans go far beyond current DeFi boundaries. Kunz’s vision includes integrating Bitcoin and other non-EVM blockchains for cross-chain swaps. The platform aims to work with any crypto assets—from traditional blue chips to memecoins—with the ability to withdraw purchased assets directly to a personal wallet.

The next level of ambition involves tokenized real-world assets (RWA). Many financial institutions and banks actively tokenize real assets—from real estate to wine. But tokenization is only half the journey. The second half is the secondary market, where these tokens can be traded without needing to contact each issuer or bank. Kunz sees 1inch as a platform providing the infrastructure for this.

User Experience as the Key to Beating CEX

One of the main reasons users still prefer centralized exchanges is simplicity. However, Kunz claims that this gap is rapidly closing. Cross-chain swaps on 1inch now require just a few steps: connect your wallet, select assets, one click, and confirm. Users no longer need to manage transactions themselves or worry about network interactions.

This abstraction of complexity is the main innovation in user experience. For the end user, it no longer matters which blockchains their assets are stored on. What matters is that they have the assets they need, preferably in stablecoins like USDC. Routing complexity, choosing the optimal execution path—all of that remains behind the scenes.

Strategy for Integrating Institutional Infrastructure

To realize this broader vision, Kunz and 1inch are developing a set of protocols and APIs aimed at financial institutions. The idea is that banks and other traditional financial organizations can use this infrastructure to trade tokenized assets as safely as possible without holding assets in their own custody.

This ambitious vision requires the right regulatory environment, but the direction is clear: 1inch aims to become a universal liquidity platform connecting the crypto world, the tokenized real assets space, and ultimately traditional finance into a single ecosystem.

Confronting Centralized Exchanges: Why Kunz Is Confident in the Outcome

The next one to three years will be critical for this confrontation. 1inch’s plans include further integration of new blockchains, expanding cross-chain functionality, and creating an even smoother user experience. But the ultimate goal remains unchanged: to make centralized exchanges a thing of the past in crypto.

It sounds radical, but data supports this vision. The 28% decline in CEX volumes during a rising crypto market indicates a structural shift in user preferences. Kunz is confident this trend will continue. His strategy is to stay ahead of this shift—constantly improving user experience and pushing the boundaries of what’s possible in decentralized architecture.

Sergey Kunz’s vision is of a fully decentralized future where every user has complete control over their assets, where there is no downtime, and where the best price is guaranteed not by platform reputation but by mathematics and competition. This is not just ambition—it’s a transformation already underway right now.