sandmark.com
Institutional players entering decentralized finance risk duplicating existing infrastructure instead of leveraging systems that are already proven and efficient onchain, according to Sergej Kunz, co-founder and chief executive of 1inch.
Speaking in an interview at EthCC 2026 in Cannes, France, Kunz said many traditional finance firms are still approaching DeFi in silos, often attempting to rebuild technology that already works well.
1inch is a DeFi aggregator that routes trades across multiple protocols to find the best possible execution. Its technology is integrated into major Web3 wallets and used by some institutional platforms, including Coinbase.
Institutions working in silos
Kunz described 1inch as a hybrid between a search engine for token swaps and a backend infrastructure provider for financial applications. The platform’s routing algorithms identify the most efficient paths for trading between assets, even when direct liquidity is unavailable, while its intent-based protocols enable compliant execution through professional market makers.
"We are like a search engine for users who want the best execution when swapping assets, and at the same time like an infrastructure layer for developers, businesses and institutions," he said.
The model positions 1inch as a foundational layer for both retail and institutional participation in DeFi markets.
However, Kunz said a lack of coordination continues to slow institutional adoption, with firms often building in isolation rather than collaborating with established protocols.
"They are working in silos and trying to build what already exists without really discovering who has already done it," he said. "I would encourage them to partner rather than reinvent the wheel because it is already working very well and is highly efficient."
His comments reflect a broader theme at EthCC, where DeFi founders are increasingly positioning their platforms as infrastructure for traditional finance rather than as direct alternatives to it.
AI to improve integration, not execution
On the topic of artificial intelligence, Kunz said its most immediate value for 1inch lies in improving developer productivity and integration, rather than enhancing core trading functions. He noted that the platform’s routing algorithms already operate with high efficiency, making AI unnecessary for execution itself.
Instead, he sees AI playing a useful role in simplifying access to data and accelerating product integration.
Kunz also expressed caution around deploying AI agents directly within financial products, citing concerns over accountability in a decentralized environment.
"This reflects the decentralized finance culture. You are responsible for your actions," he said. "I don’t want to be responsible for your actions. That’s why I’m not sure we will introduce something that decides for users. People need to understand and decide for themselves."
His remarks highlight a key tension in DeFi’s evolution: how to balance greater automation and improved user experience with the sector’s core principle of individual responsibility.