Decentralized exchange (DEX) aggregator 1inch has opened its shared liquidity protocol Aqua to users across 13 Ethereum Virtual Machine (EVM)-compatible chains.
How Aqua works
Aqua allows liquidity providers to use the same wallet balance across multiple positions instead of dividing their assets among separate pools. Tokens remain in the provider’s wallet until a matching swap takes place.
1inch co-founder Sergej Kunz explained that tokens remain in the provider’s wallet and under their control instead of being split among smart contract deposits. A single balance can therefore support several positions across different strategies.
In an example provided by 1inch, a $100,000 balance can support three separate positions offering a combined $300,000 in quoted liquidity. This does not mean that additional capital has been created; the figure represents the total amount of liquidity quoted across the positions.
Orders can only be executed against assets that are actually available in the wallet. If the balance is insufficient, the swap fails.
Unveiled last year
1inch first introduced Aqua in November last year, releasing a software development kit, libraries and documentation alongside the protocol.
The newly launched public interface allows users to create full-range, concentrated liquidity or fixed-rate positions across several networks. Supported chains include Ethereum, Base, BNB Chain, Arbitrum and Robinhood Chain.
The idle liquidity problem
The launch follows research commissioned by 1inch into capital efficiency across concentrated liquidity exchanges.
The study found that 85% of the $1.84 billion in liquidity tracked across major concentrated liquidity exchanges was underutilized during the first half of 2026.
During an average week, around $542 million remained entirely outside active trading ranges. According to the research, this inactivity resulted in an estimated $150 million in lost annual trading fees.
Aqua aims to improve capital efficiency by allowing liquidity providers to deploy the same wallet balance across several strategies without transferring their assets into separate pools.
Security and incentives
1inch said Aqua has undergone eight independent security audits. Liquidity providers nevertheless remain exposed to risks including price volatility, impermanent loss and smart contract vulnerabilities.
A liquidity incentive program distributed through Merkl has also gone live alongside the protocol.
The 1inch Foundation has committed 10 million 1INCH tokens over a three-month period, while the 1inch DAO is adding another $500,000 in USDC. At current prices, the token allocation is worth approximately $870,000, bringing the total value of the incentive program to around $1.37 million.
Impact on the 1INCH price
The 1INCH token, which will fund part of the incentive program, was trading at $0.0838 at the time of writing. The token had lost 1.59% over the previous 24 hours.
Its price moved between $0.0818 and $0.0863 during the day. The broader performance presents a different picture, with 1INCH gaining 23% over the past 30 days and 5.69% over the past week.
The dollar value of the foundation’s 10 million 1INCH commitment may therefore fluctuate from day to day depending on short-term changes in the token’s market price.
