1inch Aqua Multichain Liquidity Protocol Boosts Decentralized Exchange Efficiency

1inch has launched its Aqua Multichain Liquidity Protocol, which allows providers to use one wallet balance to back multiple positions. This means that users can keep their tokens under their control until swaps execute.

The new protocol is designed to increase liquidity and utilization in decentralized exchanges (DEXs). According to a study commissioned by 1inch, 85% of concentrated liquidity in DEXs remains unused at any given moment. The total amount of unused liquidity is $1.84 billion.

Aqua Multichain allows users to provide liquidity while keeping their tokens under their control until swaps execute. This feature enables more efficient use of capital and reduces the risk of token loss due to impermanent loss.