1inch opens Aqua liquidity protocol across 13 chains
1inch has launched its 'Aqua' liquidity protocol across 13 blockchain networks to improve capital efficiency for liquidity providers. The system allows users to back multiple trading positions with a single wallet balance, reducing the need for fragmented deposits.
Why it matters
Optimizing capital efficiency is a major challenge in decentralized finance (DeFi), and this protocol aims to reduce the amount of idle capital in crypto markets.
Aqua lets liquidity providers use the same wallet balance across multiple positions instead of splitting their assets among separate pools, with tokens remaining in the provider’s wallet until a matching swap executes.
The protocol allows “tokens to stay in your wallet, under your control, while one balance backs multiple positions across different strategies rather than being split between smart contract deposits,” 1inch co-founder Sergej Kunz told CoinDesk.
A $100,000 balance could support three positions quoting a combined $300,000, according to 1inch. That is quoted liquidity rather than additional capital, and orders can only execute against assets held in the wallet, and a swap fails if the balance cannot cover it.
1inch first unveiled Aqua last year, including its software development kit, libraries and documentation. The public interface lets users create full-range, concentrated or pegged positions across chains including Ethereum, Base, BNB Chain, Arbitrum and Robinhood Chain.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in