1inch

An AI trading agent misinterpreted a 202 OK response as a successful trade completion, despite the transaction reverting on-chain due to a gas spike. **What happened:** - Agent received HTTP 202 status code and assumed trade executed - Actual transaction reverted on blockchain due to unexpected gas costs - Agent continued attempting trades against a balance that no longer existed - Resulted in recursive gas drain through phantom retry attempts **The core issue:** This incident highlights the gap between off-chain API responses and on-chain reality. A 202 status typically means "accepted for processing" - not "completed" - but the agent treated it as confirmation. **Context:** This follows ongoing discussions about agent infrastructure complexity. Earlier solutions like Orbs Agentic proposed using EIP-712-signed intents with relay networks to abstract away gas management across multiple chains. **Key takeaway:** AI agents need robust confirmation mechanisms that verify on-chain state, not just API responses, before proceeding with dependent transactions.

**1inch MCP now supports Fusion-style intent swaps**, executing orders away from the public mempool to reduce transaction failures. **Key features:** - Orders execute off-chain, avoiding MEV and front-running risks - Fewer failure modes that appear successful on-chain - Built on top of existing MCP infrastructure **Context:** 1inch MCP already provides agents with: - Access to 500+ liquidity sources across 13+ chains - On-demand querying of docs and API specs - Full 1inch API suite integration The Fusion integration means agents can now route swaps through intent-based execution while maintaining lean context and fresh data. [Learn more about 1inch MCP](http://business.1inch.com/1inch-mcp)

**1inch has issued a statement addressing misleading reports about a security incident involving TrustedVolumes.** The company confirmed that: - Neither 1inch nor its protocols were involved in the exploit - No impact on 1inch systems, infrastructure, or user funds - TrustedVolumes operates independently as a liquidity provider used by multiple protocols - The relationship is not exclusive to 1inch **The company is monitoring the situation and assisting relevant security parties.** This clarification comes as the DeFi space continues to face security challenges. 1inch emphasized that TrustedVolumes functions as an independent third-party service provider across the industry, not as part of 1inch's core infrastructure. Users can continue using 1inch protocols with confidence as the platform's security remains intact.

**The Problem with AI Trading Agents** AI agents excel at strategy but struggle with execution due to stale or fragmented data - the root cause of hallucinations in trading decisions. **Two-Layer Approach** - **Strategy layer**: Models need independence for different decision inputs - **Execution layer**: All agents must share the same live liquidity view **1inch MCP Solution** The Model Context Protocol (MCP) provides a unified data foundation: - Aggregates **500+ liquidity sources** in real-time - Eliminates stale data that causes AI hallucinations - Enables grounded reasoning instead of guesswork **Why It Matters** Without proper infrastructure, LLMs make trading decisions based on outdated information or fabricated context. MCP bridges the gap between AI reasoning capabilities and live market data. [Learn more about 1inch MCP](http://business.1inch.com/1inch-mcp)

**Blockchain Rooftop Cinema Club in Miami Beach** 1inch and Hacken are hosting an exclusive evening event for Web3 founders, investors, and industry leaders during Consensus 2026. **Event Details:** - **Date:** May 5, 2026 - **Location:** South Beach, Miami Beach - **Doors open:** 6:30 PM **Program Highlights:** - 6:45 PM: Panel discussion on "Digital Asset Security & Compliance in 2026" - Panelists include representatives from Hacken, Global Ledger, Ethereal Labs, and 1inch - Partner demonstrations and networking opportunities - Open-air cinema screening under the Miami sky [Register here](https://luma.com/p4hlhi1y)

**Emergency Solution Deployed in 24 Hours** 1inch built an emergency exit mechanism that processed **$135.75 million in aWETH** within the first day of launch. **Key Metrics:** - 58,327 aWETH converted to liquid collateral - Thousands of users protected from liquidation risk - Solution developed and deployed in a single night The emergency infrastructure provided an exit route for users who previously had no way to protect their positions. [Full technical details](https://blog.1inch.com/how-to-save-100-mln/)

When ETH withdrawals froze on Aave earlier this month, users faced mounting liquidation risk with no way out. **0xfluid contacted 1inch on April 19 at 21:39**, and the team deployed emergency routing by 03:10 the next morning—**a 5.5-hour turnaround**. **Key developments:** - ETH withdrawal freeze created urgent liquidation threat for Aave users - Emergency routing solution went live in under 6 hours - $100M successfully swapped out of Aave through 1inch since April 17 - Operation dubbed "WETH Rescue" by the community The incident highlights both the fragility of DeFi protocols during stress events and the speed at which teams can coordinate emergency responses. The freeze affected users' ability to manage positions during a critical period.

Two sessions at the CFC St. Moritz Industry Days examine practical institutional crypto adoption. **Navigating Legal Uncertainty** (17:15-17:45) - Orest Gavryliak, Chief Legal Officer at 1inch, discusses how custody services are evolving beyond asset protection - Focus on new revenue models and trust infrastructure - Explores real-world applications currently leading the sector **Institutional DeFi without Bridges** (18:05-18:30) - Sasha, Head of BD at 1inch, explains cross-chain trading methods that bypass traditional bridges - Covers integration between existing trading infrastructure and DeFi protocols - Examines current institutional use cases Both sessions address practical challenges institutions face when adopting decentralized finance solutions. [Event details](https://industry-days.cfc-stmoritz.com/)

The 1inch team will participate in panel discussions at **CFC St. Moritz Industry Days** on Thursday, January 15. **Key Details:** - Event: CFC St. Moritz Industry Days - Date: Thursday, January 15 - Participants: 1inch team members - Format: Multiple panel discussions The announcement invites attendees who are in the area to catch the team's presentations. Specific panel topics and timing details were not disclosed in the announcement.

1inch continues its security awareness campaign with a straightforward reminder to users. **Key Message:** - Users should maintain personal vigilance when interacting with DeFi protocols - The core principle: "Don't trust - verify" - Security resources available at [1inch.com/security](http://1inch.com/security) **Context:** This follows 1inch's previous security initiatives, including their token warning system launched in mid-2025. That system, built on 1inch Shield in collaboration with Web3 Antivirus, automatically alerts users when interacting with potentially malicious tokens during swaps. The repeated messaging underscores the ongoing importance of user responsibility in DeFi security, even with automated protections in place.