Decentralized exchange aggregator 1inch has launched Aqua, its shared liquidity layer, to all users, expanding access to a protocol designed to connect liquidity across fragmented decentralized exchange (DEX) markets. The release comes about eight months after Aqua was initially made available exclusively to developers.
The protocol became operational across 13 Ethereum Virtual Machine (EVM)-compatible blockchain networks, including Ethereum, Arbitrum, Base, BNB Chain, and Robinhood Chain. The public rollout follows the earlier developer launch, while the user-facing interface had originally been expected during the first quarter of the year.
Aqua is designed to provide a shared liquidity layer that enables decentralized trading across multiple blockchain networks without requiring liquidity providers to deposit their assets into a centralized pool.
Registry-Based Model Aims to Improve Capital Efficiency
Unlike conventional decentralized finance (DeFi) liquidity pools, Aqua operates as a registry that references assets held in users’ wallets rather than storing tokens within a smart contract. Liquidity providers authorize token balances and create trading positions based on those holdings. When a trade satisfies the predefined conditions of a position, the protocol transfers the required tokens directly from the provider’s wallet and completes settlement, including fees, within a single transaction.
According to 1inch, approvals are configured separately for each supported token and blockchain network, allowing users to revoke permissions whenever they choose.
The company also stated that every transaction executed through Aqua is processed by a verified counterparty, which it described as an approved market maker or arbitrage participant whose eligibility is validated on-chain at the time of execution. The protocol said this verification process forms part of its approach to developing a more controlled and compliance-oriented decentralized finance infrastructure.
Protocol Introduces New Liquidity Structure
1inch stated that Aqua’s architecture is intended to reduce certain risks associated with liquidity provision. The company explained that because each liquidity position is owned by a single provider, attacks involving just-in-time fee extraction become significantly more difficult, with the potential cost of such strategies estimated to reach as much as 44% of a provider’s fee income.
The protocol also illustrated how its structure allows the same wallet balance to support multiple trading positions without borrowing assets. In one example, a wallet containing $100,000 in tokens could back positions collectively quoting $300,000 in liquidity. However, the company noted that trades can only be executed against assets actually available in the wallet, meaning exposure remains limited to the provider’s existing holdings rather than the combined quoted value of all positions.
Liquidity providers: it’s time to wake up.
Use 1inch Aqua to find more activity in more markets, without letting your tokens out of your wallet.
Risk-controlled execution meets full self-custody.
No, you aren’t dreaming.
Here’s how it works:
— 1inch (@1inch) July 28, 2026
The protocol’s design allows multiple liquidity positions to reference the same wallet balance while limiting trade execution to assets that are actually available, eliminating the need for token deposits into liquidity pools.
To encourage early participation, the 1inch Foundation has allocated 10 million 1INCH tokens as liquidity provider incentives. An additional 500,000 USDC has been committed by the 1inch decentralized autonomous organization, with both incentive programs scheduled to be distributed through the Merkl platform.
Audits Completed Before Public Release
Before opening Aqua to the public, 1inch said the protocol underwent eight independent security audits conducted by firms including OpenZeppelin, Nethermind, Hexens, and Bailsec.
The company also cautioned that Aqua is intended for experienced users. It noted that liquidity providers remain exposed to market volatility and smart contract risks, while trading fees are not guaranteed and asset prices may move against open positions.
1inch said Aqua had completed eight independent security audits before its public launch, while cautioning that the protocol is intended for experienced users who understand the risks associated with decentralized finance.
During Aqua’s earlier developer release, a spokesperson for the company indicated that the protocol had the potential to improve capital efficiency, deepen liquidity across decentralized finance markets, and reduce fragmentation among decentralized exchanges.
