Aqua Protocol Launches Across 13 Chains to Boost Shared Liquidity

DeFi aggregator 1inch has launched its shared liquidity protocol, Aqua, across 13 Ethereum Virtual Machine-compatible chains. This feature allows liquidity providers to use the same wallet balance across multiple positions instead of splitting their assets among separate pools.

Aqua tokens remain in the provider's wallet until a matching swap executes, reducing the risk of impermanent loss and smart-contract risks. According to 1inch, a $100,000 balance could support three positions quoting a combined $300,000 in quoted liquidity.

The protocol follows research commissioned by 1inch that found 85% of $1.84 billion tracked across major concentrated-liquidity exchanges was underutilized in the first half of 2023. This amounts to roughly $542 million sitting fully outside active trading ranges each week, missing an estimated $150 million in annual fees.

As part of the launch, a liquidity incentive program will be distributed through Merkl, with the 1inch Foundation committing 10 million 1INCH tokens and the 1inch DAO adding $500,000 in USDC over three months.