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1inch’s Aqua Transforms DeFi Liquidity by Introducing Shared Capital Without Lockup Requirements

1inch’s Aqua Transforms DeFi Liquidity by Introducing Shared Capital Without Lockup Requirements

Bitget-RWA2025/11/19 16:50
By:Bitget-RWA

- 1inch launches Aqua, a DeFi liquidity protocol enabling shared capital access without locking funds or splitting pools. - Aqua transforms wallets into self-custodial AMMs, allowing atomic swaps and multiple strategies on same assets. - Developers gain early access to SDKs and $100K bounties, with co-founders calling it "scalable, capital-efficient DeFi's foundation." - Protocol aims to reduce TVL competition while addressing past security issues, positioning 1inch as a DeFi innovation leader.

1inch, a prominent player in decentralized finance (DeFi), has introduced Aqua—a novel shared liquidity protocol aimed at tackling ongoing fragmentation and inefficiency issues in decentralized markets. Now accessible to developers, Aqua seeks to revolutionize liquidity management by letting multiple strategies tap into the same pool of capital at once, all without locking assets in smart contracts or dividing them among separate pools

.

The main breakthrough of Aqua is its capacity to turn user wallets into self-custodial automated market makers (AMMs), empowering liquidity providers to implement several strategies on the same assets based on preset rules. This approach removes the reliance on traditional liquidity pools, which typically restrict funds to one strategy, often resulting in inefficiencies and missed opportunities

. By supporting atomic swaps that instantly utilize and return liquidity, Aqua opens up deeper market access for smaller projects and boosts capital efficiency for participants.

The developer preview of the protocol features early access to its software development kit (SDK), technical libraries, and documentation,

. is providing rewards of up to $100,000 for valuable contributions, bug identification, and performance enhancements, to help refine the protocol ahead of its frontend debut in Q1 2026. Developers have the option to create strategies from the ground up or use the SwapVM instruction library to assemble ready-made components, making the development process more efficient .

Anton Bukov, co-founder of 1inch, highlighted Aqua’s ability to “multiply effective capital” and suggested that only the creativity of strategy design limits liquidity efficiency

. He described Aqua as the “most exciting opportunity in DeFi,” encouraging liquidity providers to “unlock their full potential.” Fellow co-founder Sergej Kunz described Aqua as a foundational layer for “scalable, capital-efficient DeFi,” drawing comparisons to their 2019 aggregation protocol that transformed token swaps .

Aqua’s advantages go beyond just developers. For everyday users, the protocol ensures genuine self-custody, keeping assets under their control while strategies execute atomically. It also streamlines capital management by eliminating complicated deposit and withdrawal processes,

. This setup tackles a major challenge in DeFi, where liquidity providers often have to choose between maximizing returns and locking up capital.

This launch follows several strategic moves by 1inch, such as integrating its API with Coinbase’s retail platform and enabling cross-chain swaps between

and EVM-compatible networks . Recently, however, the platform experienced a $5 million smart contract breach related to outdated Fusion v1 resolvers, and the launch of a bug bounty initiative. The development of Aqua highlights 1inch’s commitment to innovation while addressing previous security issues.

With Aqua, 1inch is working to solidify its role as a key player in the DeFi landscape. By facilitating shared liquidity, the protocol could ease competition over total value locked (TVL) and encourage a more unified market. As the frontend nears its 2026 release, both developers and liquidity providers are set to

and help define the future of decentralized finance.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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