1inch Introduces Aqua, a Groundbreaking Protocol for Shared Capital in DeFi Strategies

The decentralized exchange aggregator 1inch has launched Aqua, a novel liquidity protocol that allows DeFi applications to utilize the same capital pool across various strategies while maintaining user control. The Aqua software development kit (SDK), libraries, and documentation are now available on GitHub, with a comprehensive front-end interface slated for release in early 2026. This 'shared liquidity layer' facilitates the use of capital from a single wallet to back multiple trading strategies concurrently, eliminating the need for users to lock their funds into a specific smart contract. Instead, assets remain in the user's wallet, and strategies access them only when trades are executed. According to 1inch co-founder Anton Bukov, 'Aqua addresses liquidity fragmentation for market makers by amplifying effective capital, making strategy the only limit to capital efficiency.' This development enables liquidity providers to authorize their tokens for multiple strategies, such as automated market makers, stable swap pools, or custom logic, all simultaneously. Each strategy operates independently with its own rules and access limits, monitored by Aqua's accounting system. The developer preview allows for early experimentation, enabling builders to create custom strategies or leverage 1inch's partner protocol, SwapVM, to access pre-built ones. This model has the potential to enhance both capital efficiency and utility efficiency, as funds are not locked in a pool, allowing users to provide liquidity, participate in governance, or post collateral on lending platforms concurrently.