1inch DAO votes to discontinue stealing "positive slippage" from users when trades result in a surplus

1inch DAO, the governance body behind the 1inch Network’s decentralized exchange aggregator, has voted to discontinue collecting swap surplus (positive slippage) from users and to redirect all such surplus back to traders. Positive slippage refers to a situation where a trade executes at a better rate than initially quoted, creating a surplus between the minimum amount the user agreed to receive and the actual amount obtained. Previously, this surplus was captured as a revenue source at the protocol level, but under governance proposal 1IP-28, the community approved ending this practice so that any execution surplus is automatically returned to users during the swap process. The decision is framed as a user‑experience and competitiveness move: 1inch governance materials and subsequent analyses highlight that using swap surplus as revenue can negatively impact a subset of users and make quoting behavior less attractive compared with rival aggregators that already pass more slippage benefits back to traders. By eliminating surplus collection, 1inch aims to offer more favorable effective swap rates and align incentives more closely with users, even though it reduces a potential revenue stream for the DAO and related entities. The change also fits into a broader, ongoing discussion around 1inch DAO’s financial sustainability and how protocol‑generated revenues (from features such as limit orders or matching surpluses) should be shared between resolvers, the DAO treasury, and users.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• 1inch Network | 1inch Blog (Page 3) (1inch.com)
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• 1inch community proposes to stop collecting Swap surplus - Binance (binance.com)
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