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1inch Launches Aqua, a Self‑Custodial Shared Liquidity Layer

By letting providers keep tokens in their own wallets as virtual balances to back multiple positions, Aqua aims to boost capital efficiency and is supported by a 10 million 1INCH and 500,000 USDC incentive program.

Overview

  • Aqua went live Tuesday, July 28, 2026, and is available across 13 EVM‑compatible chains including Ethereum, Arbitrum, Base, BNB Chain and Optimism.
  • The protocol uses a registry and per‑wallet virtual balances so providers approve token access but never deposit funds into pools, and swaps pull tokens from wallets only when a match fills.
  • 1inch announced a funded incentives campaign delivered through Merkl that commits 10 million 1INCH from the 1inch Foundation plus a 500,000 USDC boost from the 1inch DAO to reward providers.
  • Aqua has completed eight independent security audits by named firms and enforces single‑owner positions to reduce just‑in‑time fee sniping, but users still face market exposure, impermanent loss and smart‑contract risk.
  • The public launch builds on a November 2025 developer release with an SDK and bounty program and signals a push to improve on‑chain capital use and attract larger liquidity by reducing custody and bridging friction.