Decentralized exchange aggregator 1inch has launched its shared DeFi liquidity layer, Aqua, on 13 EVM chains. The protocol allows liquidity providers to authorize strategies against one wallet inventory, with assets remaining in the wallet until a trade settles, enabling risk-controlled swaps with verified counterparties.
Aqua aims to improve capital efficiency in DeFi by allowing liquidity providers to utilize their assets across multiple protocols simultaneously without depositing them into individual pools, while maintaining self-custody and enabling risk-controlled swaps.
Decentralized exchange aggregator 1inch has officially opened its shared DeFi liquidity layer, Aqua, to all users, eight months after its initial release to developers. The protocol is now live on 13 EVM-compatible chains, including Ethereum, Arbitrum, and Base. Aqua functions as a registry rather than a traditional liquidity pool. Liquidity providers approve their wallet balances, and tokens are only moved when a swap is executed against their approved position. This mechanism ensures that tokens remain in the provider's wallet until a transaction is finalized, offering enhanced self-custody. Every swap on Aqua is executed by a verified counterparty, which 1inch defines as a vetted market maker or arbitrage bot. This on-chain enforcement is presented as a first for a liquidity venue, aiming to provide a risk-controlled environment. 1inch suggests this model can prevent fee skimming and caps exposure by actual holdings rather than the combined size of positions. The 1inch Foundation has committed 10 million 1INCH tokens, and the 1inch DAO has contributed 500,000 USDC towards provider rewards, to be distributed via Merkl. The company has stated that Aqua is intended for experienced users, acknowledging that fees are not guaranteed and users carry market and smart contract risks.