1Inch introduces Aqua protocol to consolidate DeFi liquidity across 11 blockchain networks
The decentralized exchange aggregator has unveiled Aqua, a revolutionary wallet-based liquidity mechanism that enables capital providers to execute multiple DeFi strategies simultaneously while keeping their assets accessible rather than locked in conventional pools.
The decentralized exchange aggregator platform 1Inch (1INCH) has unveiled Aqua, a new protocol designed to consolidate liquidity pools across various markets within the decentralized finance (DeFi) space.
Based on the announcement released on Tuesday, Aqua enables those providing liquidity to approve multiple strategies using a single wallet inventory, with the funds staying within the wallet until an actual trade executes — eliminating the need to deposit capital into specific liquidity pools. The new protocol is now operational across 13 different blockchain networks, encompassing Ethereum, Arbitrum (ARB), Base, Robinhood Chain and BNB Chain (BNB).
Aqua delivers a comprehensive solution that incorporates a universal onchain registry, wallet-supported automated market making mechanisms, atomic settlement functionality and user-oriented position management tools. This approach makes liquidity more broadly accessible since it doesn't need to be committed to any specific protocol — however, it also means the liquidity isn't multiplied because assets can only participate in one transaction at any given moment.
When a user commits $10,000 in liquidity, they have the ability to list $10,000 across three different protocols totaling $30,000 in advertised liquidity — however, only $10,000 worth of concurrent transactions can actually execute using those same funds. This mechanism functions similarly to strategic overbooking and has the potential to enhance liquidity capital efficiency when the likelihood of simultaneous calls across multiple operations is low.
A representative from 1Inch informed Cointelegraph that the Aqua protocol is accessible to resolvers who possess a 1Inch-issued access credential, noting that support is not universal across all protocols.
The company representative further clarified that every position is quoted based on the market maker's current wallet balance, meaning that following a fill, the remaining position quotes reflect what remains available.
"If a swap would exceed the actual balance, it reverts atomically,"the representative stated.
In additional news, subject to tokenholder voting approval, the protocol plans to distribute 500,000 USD Coin (USDC) toward incentivizing Aqua adoption along with 10 million 1INCH (valued at approximately $825 at the time of writing.)
"The initiative is designed to accelerate liquidity growth and swap activity across supported pairs,"as stated in 1inch's announcement.
The announcement released today comes on the heels of a declaration made earlier this month by Anton Bukov, one of the co-founders of 1inch, who revealed that he was "fired" from the 1inch organization in November 2025 following his efforts to "push[ing] for change" within the company's management structure and operational practices.