1inch launches Aqua shared liquidity layer across 13 chains

1inch opened its Aqua shared liquidity layer to all users on 13 EVM chains, letting providers keep tokens in their wallets while one balance backs multiple positions.

"The liquidity provisioning space is broken, but you only see how broken once there's an alternative," Sergej Kunz, 1inch co-founder, said. "DeFi doesn't just need more liquidity. It needs more useful liquidity, active wherever demand appears."

The 1inch Foundation committed 10 million 1INCH tokens and the 1inch DAO added $500,000 in USDC to a Merkl-powered incentive program. A $100,000 balance can support three positions collectively quoting $300,000 of liquidity, according to 1inch. The protocol tracks approved wallet balances and only pulls tokens when a swap order meets a position's criteria, executing the trade and returning fees in a single atomic transaction.

The launch addresses a structural inefficiency that has limited DeFi's ability to attract traditional finance capital. Dune research commissioned by 1inch found 85% of $1.84 billion in concentrated liquidity across major DEXs was underutilized in the first half of 2026, with about $542 million sitting fully out of range in an average week, costing an estimated $150 million in foregone fees annually.

Aqua works as a registry rather than a pool. Users connect a wallet, approve a token balance, and create positions that draw from that balance. Positions can be full range, concentrated or pegged depending on the pair. There is no lock-up, and exposure is capped by the tokens actually held — if the wallet cannot cover a swap, Aqua does not call on the provider's tokens.

The protocol goes live on Ethereum, Arbitrum, Base, Robinhood Chain and BNB Chain, among others. Additional features include a liquidity leaderboard, batch position creation, provider profiles with cross-chain positions, sub-wallets, and an AI-assisted provisioning flow via the 1inch Business MCP with safe batch deployment coming soon.

Aqua underwent eight independent security audits from OpenZeppelin, Bailsec, Hashlock, Hexens, MixBytes, Nethermind, Theori and Decurity. Its self-custodial design means the protocol never holds user tokens, and revocation stops new fills as soon as it confirms on-chain. The protocol is also protected from JIT fee sniping by design, as each position has a single owner with no shared fee moment for bots to exploit.

For 1inch, which serves 27 million users and processes more than $100 million in daily trades, Aqua represents a bet that capital-efficient, self-custodial liquidity provisioning can unlock the next wave of DeFi growth. Providers still face impermanent loss and smart-contract risk, and swap fees are not guaranteed.

This article is for informational purposes only and does not constitute investment advice.