Proposal to switch FiRM’s Accelerated Leverage Engine (ALE) to the 1inch v6 Router

Forum Post: https://forum.inverse.finance/t/switch-ale-from-1inch-v5-to-1inch-v6-router/432

Summary

ALE allows users to leverage up and down positions on FiRM, using a DOLA flash mint. This proposal seeks to switch the router used in ALE from 1inch v5 to 1inch v6.

Background

ALE was launched on FiRM in November 2023 using the 0x Swap API router, although due to poor routing for many of the collaterals on FiRM, this was soon switched to the 1inch v5 router given the significantly better trade outcomes for users.

Objective

The 1inch team launched the new v6 router in March 2024, with the main improvements cited as being gas optimizations:

• Up to 16% gas reduction for the most common trades
• Limit orders are 14% more gas-efficient
• RFQ-like orders are 3% more gas-efficient

Utilizing 1inch v6 within ALE is expected to save some gas for FiRM users.

On-Chain Action

• Set exchange proxy of ALE to 1inch v6