Let's take a closer look at these terms and use 1inch as an example.

What are decentralised exchanges?

When you buy cryptocurrencies on a centralised exchange, a company, broker or payment processor mediates the trade between you and the other party. A decentralised exchange (DEX) allows people to trade cryptocurrencies (peer-to-peer) without a broker or middleman standing in between.

What is the advantage of using DEX?

Instead of a middleman, an algorithm or "smart contract" sets the price and enables the exchange. Traders can also exchange directly from their crypto wallet. Decentralised exchange platforms are some of the most fundamental building blocks of the decentralised finance ecosystem (DeFi). Some of the most popular DEX are UniSwap, SushiSwap, PancakeSwap and of course SunSwap.

What is the advantage of using DEX?

Because DEX are structured differently and trades take place without a third party in the middle, a DEX can offer different rates and fees for the same token. This means that smart crypto traders can find the best deals on tokens. How exactly? DEX also have different levels of liquidity. So if you want to make a big trade and DEX doesn't have enough liquidity, it can negatively affect the price and your trade. One way to get around this is for example 1inch to combine the liquidity of multiple DEXs and split your trade across them, aggregating the prices and using its algorithm to find the best prices on all available DEXs. So you can always buy and sell at the best price.

DAOs and management

What is inefficient management? Have you ever disagreed with a decision made by a leader in your organisation? Or have you ever been fooled by a misleading financial report? These are both examples of inefficient governance. This is because someone has the power to make decisions or act on behalf of others, which means there is a risk that these people have biased interests or priorities. Thanks to the invention of blockchain, a new and promising model has been born.

What are Decentralised and Autonomous Organisations?

A decentralised autonomous organisation, or DAO, is a model of governance. DAOs are built on public blockchains and are transparent and open source.

DAOs solve management and governance problems by giving all token holders, users and the general community a say in decision-making. Everyone can participate in the DAO's discussions through online forums, but for certain DAOs, only users who stake their tokens can do so. This ensures that all participants who can vote in the administrative process have an interest in the success of the project.

They are therefore administration tokens in the respective network.

So when you "stake" these tokens, you get voting rights and the opportunity to participate in the decision-making process. These decisions can range from the allocation of treasury funds for a particular project to the introduction of a new protocol on the network, and everything in between.