1inch has launched Aqua, its shared liquidity layer, making it available to all users across 13 EVM chains after an eight-month developer-only phase. The protocol aims to provide risk-controlled execution with full self-custody by functioning as a registry rather than a traditional liquidity pool.
Aqua went live on Tuesday, accessible on chains including Ethereum, Arbitrum, Base, BNB Chain, and Robinhood Chain. In this registry model, liquidity providers approve token balances and create positions that draw on these approved amounts without depositing tokens into a smart contract. Swaps are executed atomically, with the protocol pulling tokens and returning proceeds and fees when a swap matches a position’s terms.
According to 1inch, Aqua is positioned as the first risk-controlled liquidity venue, signaling a move toward what the company describes as ‘risk-controlled and regulated DeFi.’ The protocol enforces on-chain verification of counterparties at the time of a swap. 1inch defines a ‘verified counterparty’ as a market maker or arbitrage bot that has undergone verification.
Liquidity providers on Aqua set approvals per token and per chain, which can be revoked. The system caps exposure by a provider’s actual holdings, not by the combined size of their positions. For instance, a $100,000 balance could support multiple positions, but a swap can only execute against available tokens in the wallet, as nothing is borrowed.
To incentivize participation, the 1inch Foundation has committed 10 million 1INCH tokens for provider rewards, and 500,000 USDC from the 1inch DAO will be distributed through Merkl. Aqua has undergone eight independent audits by firms including OpenZeppelin, Nethermind, Hexens, and Bailsec, according to 1inch.
1inch has cautioned that Aqua is built for ‘experienced users,’ noting that fees are not guaranteed, prices can move against a position, and providers inherently carry market and smart contract risk. The exact launch date of Tuesday was not specified, and the full list of 13 EVM chains was not provided.
1inch claims Aqua has the potential to ‘transform how capital and yield strategies operate in DeFi,’ aiming to provide deeper liquidity across the industry and reduce fragmentation. The protocol’s design emphasizes self-custody and risk control to address challenges in decentralized finance liquidity provision.
Why This Matters
The materials describe a narrow update: 1inch has made its shared liquidity layer, Aqua, available to all users after an eight-month developer-only phase. The exact date of the Tuesday launch is not specified.
Broader Context
Source materials place the factual news in this context: 1inch has opened Aqua, its sharedDeFiliquidity layer, to all users, eight months after releasing it to developers only.
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