1inch Launches Aqua Protocol After Study Finds 85% of DEX Liquidity Idle

1inch has introduced Aqua, a new shared liquidity protocol designed to improve how liquidity is provided across decentralized finance.

According to the project, Aqua allows liquidity providers to use a single wallet balance across multiple liquidity positions without locking their assets into traditional liquidity pools.

The protocol is now available across 13 EVM compatible blockchain networks, including Ethereum, Arbitrum, Base, BNB Chain, and Robinhood Chain.

The launch follows research commissioned by 1inch showing that a large share of decentralized exchange liquidity remains underused, highlighting an opportunity to improve capital efficiency while preserving self custody.

Key Takeaways

• 1inch has launched Aqua, a self custodial shared liquidity protocol across 13 blockchain networks.

• Aqua allows one wallet balance to support multiple liquidity positions without locking user assets.

• Research from 1inch estimates that about $1.6 billion in decentralized exchange liquidity was underutilized during the first half of 2026.

What Is the 1inch Aqua Protocol?

Aqua introduces a different approach to liquidity provision compared with traditional automated market maker pools.

Instead of depositing assets into liquidity pools, providers approve token balances directly from their wallets.

How Aqua works

• Assets remain inside the user’s wallet until a qualifying swap is executed.

• A single wallet balance can support multiple liquidity positions simultaneously.

• Liquidity providers can create or remove positions without lock up periods.

• Every swap is completed through an atomic transaction, moving assets only when predefined conditions are met.

This structure is designed to improve capital efficiency while allowing users to retain full control of their assets.

According to 1inch, Aqua also limits transactions to verified counterparties and includes protections against common attacks such as just in time fee sniping.

The protocol has completed security reviews from eight independent audit firms, including OpenZeppelin, Nethermind, Hexens, Bailsec, and several others.

These audits are intended to strengthen confidence in the protocol’s smart contracts before wider adoption.

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Why Aqua Could Change DeFi Liquidity

The launch of Aqua follows research commissioned by 1inch that found much of today’s decentralized exchange liquidity is not being used efficiently.

The liquidity challenge

The study estimates that:

• Around 85% of concentrated liquidity remained underutilized during the first half of 2026.

• Approximately $1.6 billion of the $1.84 billion tracked liquidity generated limited activity.

• Nearly $542 million was completely outside active trading ranges during an average week.

• Underutilized liquidity may contribute to an estimated $150 million in unrealized annual trading fees.

Rather than splitting capital across different liquidity pools and protocols, Aqua allows providers to use the same assets across multiple quotes at once.

This approach may improve capital utilization while reducing the need to move funds between protocols.

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1INCH Price and What Comes Next

The launch of Aqua also brings renewed attention to the 1INCH token, which continues to play an important role within the broader ecosystem.

1INCH price overview

• Current Price: $0.08495

• 24 hour change: Up 4.11%

• Market Capitalization: About $119.4 million

• 24 hour Trading Volume: About $136,400

While the protocol launch represents a significant product update, the long term impact on the token will depend on user adoption and liquidity growth.

As more liquidity providers begin using Aqua, market participants will watch whether higher capital efficiency translates into increased trading activity across supported networks.

Alongside Aqua, 1inch has also introduced a liquidity incentive program supported by 10 million 1INCH tokens from the 1inch Foundation and an additional 500,000 USDC provided through the 1inch DAO.

These incentives are intended to encourage liquidity providers to participate during the early stages of the protocol’s rollout.

Read Also: TradFi vs. DeFi — Opportunities for Profit, Differences, and Risks

Conclusion

The launch of Aqua represents an important development for the 1inch ecosystem and the broader decentralized finance market.

By allowing liquidity providers to keep assets in their own wallets while supporting multiple liquidity positions, Aqua introduces a model that focuses on both efficiency and self custody.

Although it remains early to measure long term adoption, the protocol addresses one of the largest challenges facing decentralized exchanges, which is underutilized liquidity.

Investors and DeFi users will likely watch closely as Aqua expands across supported blockchain networks and more liquidity providers begin using the platform.

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FAQ

What is the 1inch Aqua protocol?

Aqua is a self custodial shared liquidity protocol that allows one wallet balance to support multiple liquidity positions without locking user assets.

Which blockchain networks support Aqua?

Aqua is available across 13 EVM compatible networks, including Ethereum, Arbitrum, Base, BNB Chain, and Robinhood Chain.

Why did 1inch launch Aqua?

The protocol was developed to improve capital efficiency and reduce liquidity fragmentation across decentralized finance.

What is the current 1INCH price?

At the time of writing, the 1INCH token is trading around $0.08495, although cryptocurrency prices change continuously.

Is Aqua a custodial protocol?

No. Aqua is designed with a self custodial model, meaning users keep control of their assets in their own wallets until a qualifying transaction is executed.

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