1inch Launches Aqua, Revolutionizing DeFi Liquidity Provisioning

Decentralized finance ecosystem 1inch has launched Aqua publicly, introducing what it describes as the first self-custodial shared liquidity layer for DeFi. According to its co-founder Sergej Kunz, 'the liquidity provisioning space is broken,' and Aqua is the alternative.

Aqua enables liquidity providers to back multiple positions simultaneously using a single wallet balance, without ever locking assets into traditional smart-contract pools. The protocol tracks approved token balances and pulls required tokens from the wallet when a swap order matches a position's criteria, pushing back received tokens plus fees in a single atomic transaction.

The model represents a structural departure from concentrated liquidity pools that dominate decentralized exchanges today. Aqua lets one wallet balance back multiple quotes at once, with no borrowing involved. Positions on Aqua can be full-range, concentrated, or pegged depending on the pair and strategy.

The public launch arrives against a backdrop of underutilized capital across major decentralized exchanges. On-chain research commissioned by 1inch found that 85% of concentrated liquidity tracked across major DEXs in the first half of 2026 was underutilized, with roughly $1.6 billion sitting idle.