1Inch Unveils Aqua: A Unified Liquidity Protocol Across Multiple Chains

DeFi aggregator 1Inch has launched Aqua, a protocol designed to unify liquidity across multiple chains. This new system enables liquidity providers to authorize various strategies against one wallet inventory without having to deposit funds into individual pools. Aqua is live on 13 blockchains, including Ethereum and BNB Chain.

The protocol combines several tools in one package: an on-chain registry, automated market making strategies, atomic settlement, and consumer-facing position management. By unifying liquidity across multiple chains, users can advertise more assets to various protocols at once, potentially increasing utilization of their capital.

However, it's worth noting that the system does not multiply liquidity as assets are only involved in one operation at a time. A user providing $10,000 of liquidity can, for example, advertise $10,000 on three protocols, resulting in a total of $30,000, but only $10,000 of simultaneous trades can happen with those funds.

1Inch will allocate 500,000 USD Coin (USDC) to incentives for adoption of Aqua, alongside 10 million 1INCH tokens worth roughly $825 at the time of writing. The initiative aims to accelerate liquidity growth and swap activity across supported pairs.