1inch Rolls Out Aqua Liquidity Protocol on 13 EVM Chains to Boost DeFi Efficiency
Introduction to the New Liquidity Solution
Decentralized finance keeps growing fast, and liquidity providers often face problems with capital sitting idle. Now 1inch has launched its
What Is Aqua and How Does It Work
Aqua is a shared liquidity protocol that lets providers back multiple positions with one wallet balance. Tokens stay in the user’s wallet until a swap matches and executes. This setup means no need to split assets into separate pools or lock them in smart contracts right away.
One balance can support several strategies at once. For example, a $100,000 holding could quote up to $300,000 across three positions. The quoted amount is not extra capital. Swaps only happen if the wallet holds enough tokens, or the trade fails safely.
Key Features Across Multiple Chains
The protocol now runs on 13 EVM chains. Users can create full range, concentrated, or pegged positions on networks like Ethereum, Base, BNB Chain, Arbitrum, and Robinhood Chain. An easy public interface, plus software tools released earlier, makes it simple to start.
Tokens remain under full user control in the wallet. This design reduces the need for repeated deposits and helps liquidity flow more freely across different trading pairs.
Research Shows Big Room for Improvement
Recent data found that 85 percent of $1.84 billion in tracked liquidity on major concentrated liquidity platforms sat underutilized during the first half of 2026. On average, $542 million stayed outside active price ranges each week. This missed chance could have generated around $150 million in yearly fees.
Aqua addresses this by letting one balance back many positions without splitting funds. Providers can quote more while keeping assets ready for use.
Incentive Program to Attract Liquidity
To encourage early adoption, 1inch offers rewards through the Merkl platform. The 1inch Foundation put forward 10 million 1INCH tokens, and the DAO added $500,000 in USDC. The program runs for three months and totals about $1.37 million at current prices.
Security and Remaining Risks
The protocol passed eight independent security audits before launch. Still, users should know the usual DeFi risks remain. These include price changes, impermanent loss, and smart contract issues. Always review positions carefully before committing funds.
Why This Matters for Liquidity Providers
Traditional pool deposits often tie up capital in one place. Aqua changes that by keeping tokens in the wallet and allowing flexible quoting. This can lead to higher capital efficiency and better fee earnings over time.
Conclusion
1inch’s expansion of the
