1inch, one of the most prominent decentralized finance (DeFi) ecosystems, has unveiled Aqua — a groundbreaking liquidity infrastructure aimed at redefining capital deployment and yield generation in the DeFi landscape. Now accessible to developers, Aqua introduces a novel model of shared liquidity that promises to dramatically enhance capital efficiency and eliminate longstanding inefficiencies in liquidity provisioning.
Traditionally, liquidity in DeFi has been siloed — funds deposited into one protocol or pool could only engage in a single strategy, locking users into a specific use case and reducing overall capital productivity. Aqua challenges this model by turning every user wallet into a self-custodial automated market maker (AMM), capable of enabling multiple strategies to interact with the same assets concurrently. This approach not only amplifies the utility of individual funds but also breaks the zero-sum competition among protocols for total value locked (TVL).
Through Aqua, developers can build and deploy strategies that interact with shared liquidity. Each strategy works under its own logic and conditions, permitting atomic swaps that comply with individual strategy rules. This creates a versatile system where capital can simultaneously support multiple operations, maximizing returns without compromising self-custody or security.
The Aqua protocol is currently in its developer release phase, with a full frontend launch expected in the first quarter of 2026. In the meantime, 1inch has made Aqua’s codebase available on GitHub, inviting Web3 developers to explore, test, and contribute. Builders are encouraged to create their own applications atop Aqua, evaluate performance metrics, propose enhancements, and participate in shaping what could be the next foundational layer of DeFi liquidity.
In parallel, 1inch has introduced a bounty initiative to incentivize contributions that improve the Aqua protocol. This move seeks to foster a collaborative development environment where community-driven innovation can accelerate Aqua’s evolution.
Anton Bukov, co-founder of 1inch, emphasized Aqua’s potential to resolve liquidity fragmentation, especially for market makers. “Aqua dramatically increases capital efficiency by allowing multiple strategies to coexist. It’s not just about where you allocate funds anymore—it’s about how creatively you use them. Building AMM strategies on Aqua is the most exciting opportunity in DeFi right now,” he stated.
Sergej Kunz, fellow co-founder of 1inch, added, “Aqua is more than another protocol — it’s a fundamental shift in how liquidity operates. Just like our aggregation protocol revolutionized DeFi in 2019, Aqua is here to give users unprecedented control over their liquidity, empowering them to optimize strategies without compromise.”
1inch continues to lead DeFi innovation with a robust ecosystem encompassing more than 26 million users. The platform is known for its efficient token swaps, frequently processing over $500 million in daily trading volume. Beyond trading, 1inch offers a suite of tools including a secure self-custodial wallet, a digital asset portfolio tracker, a business interface for institutional access, and a crypto debit card for seamless spending.
With Aqua, 1inch deepens its mission of democratizing financial tools and removing technical barriers. As DeFi matures, the focus is shifting from experimental protocols to scalable infrastructure — and Aqua positions itself firmly at the forefront of this transition.
What makes Aqua particularly disruptive is its composability. Developers can create modular strategies that interact seamlessly with one another, offering enhanced flexibility and customization. This could unlock a new wave of DeFi products where risk management, liquidity mining, and yield optimization coexist within a single framework.
From a user perspective, Aqua eliminates the need to constantly migrate funds between protocols in search of better returns. Instead, users retain full control over their assets while allowing them to be leveraged across multiple strategies. This reduces gas fees, limits exposure to smart contract risk, and simplifies portfolio management.
Moreover, Aqua’s architecture supports atomic execution, meaning that transactions either complete in full or not at all. This ensures security and predictability, especially important for institutional players considering DeFi integrations.
The implications for liquidity providers (LPs) are profound. Aqua removes the binary decision-making process — no longer must LPs choose between staking in protocol A or B. Now, the same capital can serve multiple purposes, increasing potential yield without added complexity.
As the DeFi ecosystem becomes more sophisticated, the demand for tools that optimize capital usage while preserving user autonomy continues to grow. Aqua answers this demand by redefining what’s possible in liquidity provisioning.
Looking ahead, Aqua may serve as the foundation for an entirely new class of DeFi applications — from algorithmic trading bots that leverage shared liquidity, to insurance protocols that hedge against risk using pooled capital more effectively.
With its open developer access, incentive programs, and long-term vision, Aqua is positioning itself as a critical infrastructure layer in the next chapter of decentralized finance. For developers, liquidity providers, and end users alike, Aqua offers the tools to rethink capital efficiency and unlock new levels of financial innovation.