On July 28, 2026, 1inch officially launched Aqua, a groundbreaking shared liquidity layer designed for decentralized finance. This self-custodial protocol allows liquidity providers to manage multiple positions using the same wallet balance without locking funds into traditional liquidity pools.
Initially rolled out to developers in November 2025, Aqua now opens to the public across 13 EVM-compatible blockchains. The system works as a registry where users grant approval of their token balances and create liquidity positions tied to those balances. When a swap matches a position's criteria, Aqua performs a smooth atomic transaction, pulling tokens from the user's wallet and returning swapped assets plus fees instantly. Until then, users retain full control of their tokens, mitigating risks common to pool-based DeFi models.
The launch includes a Merkl-powered liquidity incentive program supported by 10 million 1INCH tokens from the 1inch Foundation and an additional 500,000 USDC from the 1inch DAO. This initiative aims to encourage liquidity providers to adopt Aqua’s more capital-efficient approach.
The traditional liquidity provision methods in DeFi have faced criticism for locking assets and exposing capital unnecessarily. Aqua offers an alternative that addresses these issues by giving liquidity providers more flexibility and control. This development marks a significant shift in DeFi infrastructure, likely to influence how decentralized exchanges operate going forward.
