1inch has introduced the innovative Aqua protocol, which radically changes the principles of liquidity management in the decentralized finance (DeFi) sector.
This is reported by Finway
Aqua Innovations: Liquidity Without Capital Lockup
Aqua is a universal liquidity protocol that allows multiple DeFi strategies to utilize the same capital without the need to lock assets in different pools. In current models, each strategy requires a separate deposit, leading to competition for total value locked (TVL) and limitations for developers and users.
With Aqua, the user’s wallet transforms into a self-custodial automated market maker (AMM). This enables the application of various strategies to a single set of tokens, with each strategy accessing liquidity based on its own parameters and able to execute atomic swaps according to internal execution rules. Thus, a single asset can operate simultaneously in multiple strategies, creating a multiplicative effect.
“According to 1inch co-founder Anton Bukov, the only limitation on capital efficiency now is the strategy.”
Opportunities for Developers and Reward Program
Developers have early access to the SDK, libraries, and documentation. Aqua simplifies the creation of new products by removing the need for complex logic around deposits, withdrawals, and fund management—strategies interact directly with the balance. Developers have the choice to build solutions from scratch or use ready-made tools, including the partner protocol SwapVM.
1inch has also announced a reward program of up to $100,000 for contributions to the development of Aqua and for bug discovery. The team hopes that engaging external developers will accelerate the protocol’s adoption and allow for rapid testing of new liquidity management models.
The public launch of Aqua for users is scheduled for the first quarter of 2026. Until then, developers can test the protocol via GitHub, explore available tools, and propose their own improvements.
At 1inch, they emphasize that Aqua aims to address the issue of liquidity fragmentation at an early stage of DeFi development. Co-founder Sergey Kunts notes that Aqua creates a foundation for a more flexible and scalable DeFi ecosystem, returning control of liquidity to users.
Developers consider the launch of Aqua one of the most significant technological updates for the 1inch ecosystem in recent years. The protocol is designed to support a wide range of products—from new AMM strategies to automated tools for enhancing profitability, which could significantly improve the competitiveness of projects with low liquidity.