- Aqua lets liquidity providers keep assets in their own wallets while making them available across multiple DeFi trading opportunities.
- The protocol is designed to improve capital efficiency through atomic settlement rather than locking funds into dedicated liquidity pools.
- Launch incentives and security audits accompany the public rollout as 1inch expands the protocol across 13 blockchain networks.
1inch has introduced Aqua, a decentralised finance protocol that enables liquidity providers to use the same wallet-held assets across multiple markets instead of locking funds into separate liquidity pools.
Following an initial developer-only release, Aqua is now available publicly on 13 EVM chains, including Ethereum, Arbitrum, Base, BNB Chain and Robinhood Chain.
The protocol functions as a registry rather than a pool. Providers approve token balances held in their own wallets, and those assets remain there until a matching swap is executed. Once triggered, the transfer of tokens, proceeds and fees is completed atomically within a single transaction.
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Improving Capital Efficiency
Because the same wallet balance can support several quoted positions, liquidity can be advertised across multiple protocols without increasing the amount of capital actually committed. As an example, US$100,000 (AU$145,000) in assets can simultaneously back US$300,000 (AU$435,000) worth of quoted liquidity, although only the tokens held in the wallet can be used to settle trades.
1inch said this model aims to improve capital efficiency while limiting providers’ exposure to the assets they already hold. If a transaction exceeds the available wallet balance, it is prevented from completing.
To encourage adoption, the 1inch Foundation has allocated 10 million 1INCH tokens for liquidity rewards, with an additional proposal for 500,000 USDC through the 1inch DAO. Aqua has also completed eight independent security audits, although providers still face market and smart contract risks and fees are not guaranteed.
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