On July 28, 2026, 1inch opened Aqua to the public, offering a fresh alternative to DeFi liquidity pools. Unlike traditional pool-based models, Aqua lets providers keep their tokens in their wallets while using them across multiple liquidity positions.
Aqua operates as a registry that connects to a user’s wallet, tracking token balances without locking assets. When a swap fits the criteria, Aqua executes the transaction atomically, ensuring tokens stay under the user’s control until the exact moment a swap occurs.
Launching simultaneously on 13 EVM-compatible chains, Aqua aims to boost capital efficiency and liquidity usability. Sergej Kunz, 1inch’s co-founder, pointed out that the liquidity space has long suffered inefficiencies, which Aqua now confronts by allowing liquidity providers to stay custodians of their funds while meeting demand wherever it arises.
To accelerate adoption, 1inch Foundation allocated 10 million 1INCH tokens, supplemented by 500,000 USDC from the 1inch DAO, creating a liquidity incentive program powered by Merkl. This initiative rewards liquidity providers engaging with Aqua's protocol, encouraging more swap activity and better market depth.
Aqua’s model challenges the old norm where providers had to lock up liquidity in pools, offering a more flexible and risk-controlled alternative. By keeping tokens ready in wallets, providers can manage positions dynamically and tap into rewards, potentially attracting more active liquidity across decentralized exchanges.
This article is for informational purposes only and does not constitute financial advice.
