Alisa Davidson
Printed: July 28, 2026 at 8:08 am Up to date: July 28, 2026 at 8:08 am
Edited and fact-checked:
July 28, 2026 at 8:08 am
In Transient
1inch launches Aqua, a shared liquidity layer enabling one pockets stability to again a number of DeFi positions with out deposits, stay throughout 13 EVM chains.
1inch has unveiled Aqua, which the decentralized alternate aggregator describes as its most vital product launch so far. Aqua is a shared liquidity layer that permits a single pockets stability to concurrently again a number of liquidity positions with out requiring customers to deposit tokens right into a protocol-controlled pool. The product is at the moment stay throughout 13 EVM-compatible chains.
The launch addresses a crucial inefficiency in decentralized finance: based on 1inch, roughly 85% of DeFi liquidity is idle or poorly positioned when trades happen, leading to skinny markets and suboptimal pricing regardless of protocols reporting substantial whole worth locked. Liquidity suppliers at the moment fragment their capital throughout quite a few swimming pools, chains, and buying and selling pairs, a follow that 1inch estimates prices the market as much as $150 million in forgone charges yearly. Aqua goals to consolidate this fragmented liquidity by enabling the identical token stability to service a number of positions, thereby rising the time property stay in vary and bettering incomes potential. The event is especially related for institutional traders and conventional finance corporations, for whom deeper, extra usable onchain liquidity is crucial to executing massive trades effectively.
Technical Structure and Danger Controls
Relatively than taking custody of funds, Aqua operates as a registry that maintains digital balances—inside accounting counters slightly than precise deposits. When a supplier opens a place, no tokens transfer; the protocol merely information how a lot of the supplier’s current token allowance is allotted to that place. When a swap executes, tokens switch immediately from the supplier’s pockets to the swapper in a single atomic transaction. If the pockets can not cowl the fill, the transaction reverts fully, eliminating partial fills and protocol debt. The Aqua contract itself holds no tokens at any time.
This mannequin depends on the Shared Liquidity Ratio (SLR), which permits the identical actual stability to again a number of positions concurrently with out creating leverage or debt. As a result of swap demand is asynchronous, a single stability can service a number of positions’ occasional fills, with every transaction capped by the precise tokens current within the pockets at execution. Pricing and execution are dealt with by SwapVM, an engine that helps a number of curve sorts—together with fixed product, concentrated liquidity, and pegged stablecoin curves—whereas permitting builders to combine customized logic.
Safety measures emphasize self-custody and bounded publicity. Suppliers retain management of their property and should revoke token allowances or shut positions at any time. The protocol has undergone audits by OpenZeppelin, Bailsec, Hexens, Nethermind, Idea, and Decurity. At launch, swap execution is restricted to verified 1inch Resolvers that maintain a soulbound KycNFT, making Aqua a self-custodial venue with verified counterparties. Nonetheless, suppliers nonetheless face market dangers, together with impermanent loss and smart-contract vulnerabilities, and charges aren’t assured.
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About The Writer
Alisa, a devoted journalist on the MPost, focuses on crypto, AI, investments, and the expansive realm of Web3. With a eager eye for rising traits and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.
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Alisa, a devoted journalist on the MPost, focuses on crypto, AI, investments, and the expansive realm of Web3. With a eager eye for rising traits and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.
Extra articles