1inch Unveils Protocol Letting Multiple DeFi Strategies Share the Same Capital
1inch, a decentralized exchange (DEX) aggregator, has recently launched Aqua, a new liquidity protocol that aims to revolutionize DeFi applications. Aqua is designed to allow DeFi applications to share the same capital base across multiple strategies without compromising user custody.
With the introduction of Aqua, developers now have access to the Aqua software development kit (SDK), libraries, and documentation on GitHub. A full front end is set to be released in early 2026, offering a user-friendly interface for seamless integration.
Aqua introduces a “shared liquidity layer” that enables capital from a single wallet to support multiple trading strategies simultaneously. In traditional DeFi platforms, users are required to choose a single strategy, locking their funds into a specific smart contract. However, with Aqua, users can keep their assets in their wallets, and strategies only utilize them when trades are executed.
According to Anton Bukov, co-founder of 1inch, Aqua addresses liquidity fragmentation for market makers by maximizing capital efficiency. With Aqua, liquidity providers can authorize their tokens for various strategies such as automated market makers (AMMs), stable swap pools, or custom logic, all at the same time. Each strategy operates independently with its own rules and access limits, managed by Aqua’s accounting system.
The release of the developer preview allows builders to experiment with creating their own strategies or integrating pre-built ones using 1inch’s partner protocol, SwapVM. This model not only enhances capital efficiency but also improves utility efficiency, enabling users to engage in multiple DeFi roles simultaneously, such as providing liquidity, participating in governance, or posting collateral on lending platforms.
Overall, Aqua represents a significant advancement in the DeFi space, offering a more efficient and flexible approach to liquidity management. By enabling users to maximize the potential of their capital across multiple strategies, Aqua is poised to reshape the way DeFi applications operate in the future.
