1inch Launches Aqua: The First Shared Liquidity Protocol Now Open To Developers
In Brief
1inch has announced the developer release of Aqua, a self-custodial, multi-strategy liquidity layer designed to enhance capital efficiency and enable shared liquidity across DeFi protocols.
Decentralised finance (DeFi) ecosystem 1inch announced the developer release of Aqua, described as a new liquidity layer designed to change how capital allocation and yield strategies function within DeFi.
According to the announcement, Aqua introduces a model of shared liquidity intended to increase capital efficiency by enabling multiple strategies to access a user’s balance at the same time without requiring funds to be withdrawn from user wallets or locked in smart contracts.
Aqua’s public-facing interface is scheduled for release in the first quarter of 2026, while developer access is already available on GitHub. The provided materials include the Aqua SDK, libraries and documentation, which are positioned as tools that allow developers to examine, implement and test the framework.
Developers may experiment with new strategies independently or use the SwapVM partner protocol to assemble strategies from existing components. The project also includes contribution incentives and bug-discovery rewards, with bounties of up to $100,000 advertised.
Aqua: A Self-Custodial, Multi-Strategy Liquidity Layer Transforming DeFi Capital Efficiency
Traditional liquidity pools limit funds to a single strategy, forcing liquidity providers to make trade-offs that often result in inefficiency and opportunity costs, while strategies and protocols compete for total value locked (TVL). Aqua introduces a new model in which each wallet functions as a self-custodial automated market maker (AMM) capable of applying multiple strategies to the same assets. Each strategy can access liquidity according to its own rules, and participants can interact with it to execute atomic swaps based on those rules, allowing the same capital to support multiple strategies simultaneously.
The platform’s design aims to provide shared liquidity rather than competition, improving liquidity depth across networks and enabling smaller projects to facilitate larger, more efficient transactions. Capital efficiency is enhanced as multiple strategies operate off a single asset, avoiding fragmentation and compounding returns. Self-custody remains central, with assets remaining under user control while strategies draw and return them instantly. For developers, Aqua removes the need to manage deposits, withdrawals, or pooling logic, enabling them to query balances directly and build on top of the system.
The Aqua developer release encourages experimentation, integration, and innovation, allowing builders to create and test new products while contributing to protocol improvements. Alongside this, 1inch has launched a bounty program to reward contributors who optimize and enhance the Aqua protocols.
“Aqua solves liquidity fragmentation for market makers by multiplying effective capital. From now on, the only limit to your capital efficiency is your strategy,” said Anton Bukov, 1inch co-founder, in a written statement. “Building AMM strategies for Aqua is the hottest opportunity in DeFi today. It’s time to help liquidity providers unleash their potential,” he added.
“Aqua is not just another protocol. It’s the foundation for scalable, capital-efficient DeFi,” said Sergej Kunz, 1inch co-founder, in a written statement. “Just as we did in 2019 with our aggregation protocol, Aqua is set to revolutionize DeFi. With Aqua, 1inch is once again giving users back the power, empowering them to manage and optimize liquidity on their own terms,” he added.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
