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1inch has publicly launched Aqua, a new liquidity layer for decentralized finance (DeFi). The system allows liquidity providers to use a single wallet balance across multiple trading positions simultaneously without locking assets in liquidity pools.
The company said the approach is designed to improve capital efficiency and address one of the key limitations of traditional decentralized exchanges (DEXs): large amounts of idle liquidity. Aqua is now available across 13 EVM-compatible networks.
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Aqua operates through a registry-based model. Users simply authorize the protocol to access a specified amount of tokens, while the assets remain in their wallets and are transferred only when a trade is executed.
An alternative to traditional liquidity pools
According to 1inch, the new architecture enables a single wallet balance to support multiple quotes simultaneously without relying on leverage. For example, $100,000 in assets can back three separate positions with a combined quoted liquidity of up to $300,000.
The project said this is possible because tokens are only committed when a swap is actually executed.
The developers describe Aqua as one of the first risk-controlled liquidity systems that does not require providers to deposit assets into liquidity pools. If a wallet does not contain enough funds to settle a trade, that liquidity provider is simply excluded from the transaction.
Alongside the public launch, 1inch announced a liquidity provider rewards program through the Merkl platform in partnership with Degensoft. The 1inch Foundation has allocated 10 million 1INCH tokens to the initiative.
In addition, the project's DAO has proposed allocating another 500,000 USDC, subject to community approval.
$1.6B in idle liquidity
At the request of 1inch, analysts at Dune conducted a study showing that around 85% of concentrated liquidity on the largest decentralized exchanges remained underutilized during the first half of 2026. In dollar terms, that amounts to approximately $1.6 billion out of $1.84 billion tracked.
The research also found that, on average, nearly 30% of concentrated liquidity was outside the active trading range each week, representing roughly $542 million in idle capital.
The launch of Aqua comes as discussions over the future regulation of decentralized finance continue in Europe. A committee of the European Parliament has backed expanding the review of the Markets in Crypto-Assets (MiCA) framework, proposing an assessment of whether dedicated rules are needed for DeFi, staking, and NFTs.
Earlier, analysts at Standard Chartered said that the recovery of decentralized finance and the expansion of the tokenized real-world asset (RWA) market could make Aave one of the biggest beneficiaries of the next crypto market cycle.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
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