1inch Launches Aqua to the Public, the First Shared Liquidity Layer for the DeFi Ecosystem

1inch, a leading decentralised finance (DeFi) ecosystem, has officially launched Aqua to the public. The platform is a shared liquidity layer featuring a self-custodial mechanism that allows liquidity providers to use their wallet balances to support multiple positions simultaneously, without locking assets into traditional liquidity pools.

First introduced to developers in November 2025, Aqua offers an alternative to the pool-based model that has long dominated DeFi. The approach enables more efficient capital utilisation with more controlled risk exposure. When a swap transaction matches a user’s criteria, the protocol draws the required tokens directly from the user’s wallet and completes the exchange along with the fee in a single process. Outside of these transactions, all assets remain fully under the user’s control in their own wallet.

Sergej Kunz, Co-founder of 1inch, stated that the weaknesses of existing liquidity provision models become clear when a better alternative emerges. He noted that Aqua addresses the inefficiencies of pool structures that have persisted for years, arguing that DeFi requires not just more liquidity, but liquidity that is effective and available when needed.

Alongside the launch, 1inch introduced the 1inch Network Incentives programme, managed by Degensoft Ltd (BVI) through Merkl. The 1inch Foundation has allocated 10 million 1INCH tokens, and the 1inch DAO has added 500,000 USDC in incentives to boost liquidity and swap activity on supported asset pairs. Liquidity providers can earn these additional rewards under the programme’s terms.

1inch argues that the current liquidity pool model is a major barrier to DeFi growth and adoption by traditional financial institutions. Sponsored on-chain research from Dune Analytics indicated that approximately 85 per cent of liquidity was concentrated on a few major decentralised exchanges and was not optimally utilised during the first half of 2026. Of the US$1.84 billion in liquidity analysed, roughly US$1.6 billion was used ineffectively, with an average of US$542 million sitting outside price ranges weekly, potentially reducing fee income by around US$150 million annually.

Aqua supports various position types, including full range, concentrated, and pegged, depending on the selected asset pair. Users can open and close positions at any time with no lock-up period, and risk exposure is limited to the actual assets held in the wallet. If the balance is insufficient, the protocol will not execute a transaction.

At launch, Aqua is available on 13 EVM-based blockchains, including Ethereum, Arbitrum, Base, Robinhood Chain, and BNB Chain. New features include a liquidity provider leaderboard, an incentives page, liquidity map visualisation, batch positions, cross-chain provider profiles, sub-wallets, and an AI-assisted liquidity provision flow via 1inch Business MCP. A safe batch deployment feature is set to follow soon.

To ensure system security, Aqua has undergone eight independent audits by firms including OpenZeppelin, Bailsec, Hashlock, Hexens, MixBytes, Nethermind, Theori, and Decurity. The self-custodial design means Aqua never holds user tokens; assets only move when a swap is executed and according to the actual available balance. The protocol is also designed to prevent JIT fee sniping, as each position is owned by a single liquidity provider. However, users still face risks including impermanent loss, market risk, and smart-contract risk.