Aqua Unites DeFi Liquidity Across 11 Chains with 1Inch's New Protocol
DeFi aggregator 1Inch has launched Aqua, a protocol designed to unite liquidity across multiple chains. This means that users can provide liquidity on one wallet and have it available across several protocols simultaneously.
Aqua's key feature is its ability to allow liquidity providers to authorize strategies against their wallet inventory without having to deposit funds into specific pools. This allows for greater flexibility and efficiency in managing liquidity.
The protocol has been deployed on 13 blockchains, including Ethereum, Arbitrum (ARB), Base, Robinhood Chain, and BNB Chain (BNB). A user providing $10,000 of liquidity can advertise it as available on three protocols at once, making a total of $30,000 available. However, only $10,000 worth of trades can happen simultaneously.
1Inch has allocated 500,000 USDC and 10 million 1INCH tokens (worth approximately $825) to incentives for adoption of Aqua. This is aimed at accelerating liquidity growth and swap activity across supported pairs.