1Inch Unites DeFi Liquidity Across 13 Chains
1Inch launches Aqua protocol, allowing liquidity providers to back multiple positions across 13 chains with one wallet balance.
The Update
Decentralized exchange aggregator 1Inch has launched its Aqua protocol, expanding it to 13 EVM-compatible blockchains. The protocol allows liquidity providers to use a single wallet balance to support multiple positions across different protocols simultaneously, without splitting their capital among separate pools. Assets remain in the provider’s wallet until a matching swap executes.
Why It Matters
This approach addresses a significant inefficiency in DeFi liquidity provision. Research cited by 1Inch found that 85% of $1.84 billion tracked across major concentrated-liquidity exchanges was underutilized in the first half of 2026, with roughly $542 million sitting outside active trading ranges each week and missing an estimated $150 million in annual fees. Aqua’s model allows providers to advertise more liquidity than they actually hold, potentially improving capital efficiency.
What To Watch
The protocol has undergone eight independent security audits, but liquidity providers still face risks from price movements, impermanent loss, and smart-contract vulnerabilities. The launch includes a $1.37 million incentive program with 10M 1INCH tokens and $500k in USDC distributed over three months. Adoption rates across different chains and the actual utilization improvement compared to traditional liquidity provision methods will be key metrics to monitor.
Sources
- coindesk.com — Details on the protocol mechanics and incentive program
- cointelegraph.com — Additional context on the protocol's deployment and strategic positioning