- 1inch has launched Aqua, a revolutionary non-custodial unified liquidity layer for DeFi, transforming traditional liquidity pools.
- With Aqua, liquidity providers can maintain control over their assets while efficiently managing multiple positions across 13 EVM-compatible networks.
- The platform introduces a comprehensive incentive program to boost liquidity growth and swap activity through significant rewards.
- Aqua aims to address inefficiencies in the existing DeFi pool model by offering enhanced capital efficiency and risk management.
A New Era for DeFi: Introducing Aqua by 1inch
1inch, a leading ecosystem in decentralized finance (DeFi), has announced the public launch of Aqua—a non-custodial unified liquidity layer poised to reshape how liquidity is managed in DeFi. With this innovative platform, announced initially during the developer launch in November 2025, Aqua offers an alternative to the traditional pool model, focusing on risk management and capital efficiency.
Revolutionizing Liquidity Management
Aqua allows liquidity providers to use their wallet balance across multiple positions without locking assets into pools. This approach stands as one of the first alternatives to conventional DeFi models. The protocol functions like a registry; users connect their wallets, approve token balances, and create liquidity positions that access these balances.
When a swap order matching position criteria is received, Aqua retrieves tokens from the user’s wallet and returns obtained tokens and fees within a single atomic transaction. Otherwise, user tokens remain safe in their wallets.
Enhanced Capital Efficiency
The current pool system in DeFi poses challenges for scaling and attracting traditional financial capital due to inefficient asset distribution across protocols. According to an on-chain study by Dune, commissioned by 1inch, about 85% of concentrated liquidity on major decentralized exchanges was used inefficiently in early 2026.
Aqua addresses these inefficiencies by allowing one wallet balance to support multiple quotations simultaneously without dividing it among various pools or positions. For instance, a $100,000 balance can sustain three positions quoting up to $300,000 collectively.
Flexible Position Management
Positions within Aqua can be full-range or concentrated based on selected pairs and types. Users can open or close positions independently without asset lockup constraints. Exposure is limited only by actual token holdings rather than theoretical aggregate sizes.
Incentivizing Growth with Rewards
The launch also introduces the 1inch Network Incentives program for Aqua’s liquidity rewards. Managed by Degensoft Ltd (BVI) via Merkl implementation, this initiative allocates substantial rewards—10 million 1INCH from the 1inch Foundation and an additional $500,000 USDC from the DAO—to enhance supported pair growth.
This incentive aims at not only improving user experience but also enabling additional earnings through boosted swap activities.
Security and Innovation at Core
Aqua’s security is fortified with audits by OpenZeppelin among others. Its architecture ensures that swaps only move assets present in provider wallets during execution—emphasizing safety while maintaining full user control over tokens.
Offering protection against JIT fee sniping due to unique position ownership further underscores its innovative design while keeping market risks inherent yet manageable for users embracing this new paradigm shift in DeFi.
Today marks an exciting milestone as users can create positions across Ethereum-based networks including Arbitrum & BNB Chain—with future enhancements such as AI assistants slated soon—to redefine how decentralized finance operates globally!
