1inch is taking aim at one of DeFi's oldest building blocks: the liquidity pool.
The protocol has launched Aqua, a shared liquidity layer that allows users to provide liquidity directly from their wallets instead of depositing assets into pools. Live across 13 EVM blockchains, including Ethereum, Arbitrum, Base, Robinhood Chain and BNB Chain, Aqua is designed to improve capital efficiency while giving providers full control of their funds until the moment a trade executes.
To support the rollout, 1inch is also launching a liquidity incentive program funded with 10 million 1INCH from the 1inch Foundation and an additional 500,000 USDC from the 1inch DAO.
Post from @1inchView the original post on X↗
Rethinking DeFi's Liquidity Model
For years, decentralized exchanges have relied on liquidity pools, requiring providers to lock assets into smart contracts in exchange for trading fees.
According to 1inch, that model has become increasingly inefficient. Research conducted by Dune Analytics found that 85% of concentrated liquidity across major DEXs was underutilized during the first half of 2026. On average, $542 million sat outside active trading ranges each week, contributing to an estimated $150 million in unrealized annual trading fees.
Aqua replaces that model by allowing liquidity providers to quote directly from assets held in their own wallets. Instead of locking funds into pools, the protocol only accesses tokens when a trade matching the provider's conditions is executed, after which assets and fees are returned in a single atomic transaction.
Because the same wallet balance can support multiple liquidity positions simultaneously, providers can deploy capital more efficiently without giving up custody.
"The liquidity provisioning space is broken, but you only see how broken once there's an alternative. Today, that alternative has arrived. With Aqua, liquidity providers no longer have to accept the inefficient pool structure they've put up with for years," said Sergej Kunz, co-founder of 1inch.
Rather than asking DeFi to lock up more capital, Aqua is designed to make the capital already onchain work harder—shifting the conversation from how much liquidity exists to how efficiently it's deployed.
Launching Across 13 Chains
Aqua is available from day one across 13 EVM-compatible networks: Ethereum, Arbitrum, Base, Robinhood Chain, Optimism, Polygon, Avalanche, BNB Chain, Linea, Unichain, zkSync Era, Sonic and Gnosis.
Alongside the public launch, 1inch has introduced Network Incentives, a Merkl-powered rewards program designed to accelerate liquidity growth across Aqua. The initiative is backed by 10 million 1INCH from the 1inch Foundation and an additional 500,000 USDC from the 1inch DAO, giving liquidity providers the opportunity to earn rewards on top of trading fees.
The platform also launches with a liquidity leaderboard, provider profiles, liquidity map visualizations, cross-chain position management and batch position creation. An AI-assisted liquidity provisioning workflow through the 1inch Business MCP is expected to follow.
Post from @1inchView the original post on X↗
How Aqua Protects Users
To support the launch, Aqua has undergone eight independent security audits by OpenZeppelin, Bailsec, Hashlock, Hexens, MixBytes, Nethermind, Theori and Decurity. While users remain exposed to risks common across DeFi—including impermanent loss, market volatility and smart contract risk—1inch says Aqua is designed to improve capital efficiency without sacrificing self-custody.
For more than a decade, DeFi has measured success by how much liquidity is locked onchain. With Aqua, 1inch is betting the next stage of growth won't come from locking away more capital, but from making the capital already in the ecosystem significantly more productive.
If that vision gains traction, Aqua could reshape one of DeFi's oldest assumptions: that liquidity has to live inside a pool to power decentralized markets.
Reporting by Lidia Yadlos
