1inch Launches Aqua Liquidity Protocol on 13 EVM-Compatible Chains

1inch has introduced its Aqua liquidity protocol across 13 Ethereum Virtual Machine (EVM)-compatible chains, enhancing the flexibility for liquidity providers. This new feature enables users to utilize a single wallet balance to manage multiple liquidity positions simultaneously, eliminating the need to distribute their capital among different pools.

The Aqua protocol retains assets in the provider's wallet until a matching swap occurs, allowing liquidity providers to maintain control over their tokens. According to 1inch co-founder Sergej Kunz, this setup enables "one balance to back multiple positions across different strategies rather than being split between smart contract deposits." For instance, a liquidity provider with a $100,000 balance could theoretically support positions amounting to a combined $300,000.

However, this does mean that orders can only execute based on the assets immediately available in the user's wallet. If the necessary balance to cover a swap is unavailable, the transaction will fail.

1inch first announced the Aqua protocol in the previous year, which also includes its software development kit, libraries, and documentation for developers. The public interface allows users to create a variety of positions across chains, including Ethereum, Base, BNB Chain, and Arbitrum.

The rollout of Aqua comes on the heels of research commissioned by 1inch that indicated 85% of the $1.84 billion tracked across significant concentrated-liquidity exchanges remained underutilized in the first half of 2026. Approximately $542 million was found to be inactive within typical trading ranges, leading to an estimated loss of $150 million in potential annual fees for providers.

Security has also been a priority for 1inch, with Aqua undergoing eight independent security audits to ensure the safety of users' funds. Nonetheless, liquidity providers should be aware of the inherent risks, including price volatility, impermanent loss, and risks associated with smart contracts.

In conjunction with the launch, 1inch is implementing a $1.37 million incentive program. This includes a distribution of 10 million 1INCH tokens by the 1inch Foundation and an additional $500,000 in USDC from the 1inch DAO, slated to occur over the next three months.

This program aims to encourage adoption and active participation within the Aqua ecosystem, indicating 1inch's commitment to enhancing liquidity provision across decentralized finance (DeFi).