1Inch Launches Aqua Protocol to Unify DeFi Liquidity Across Multiple Chains
Vexoda Newsroom
Decentralized exchange aggregator 1Inch has launched its Aqua protocol, allowing liquidity providers to manage their funds across multiple protocols on various blockchains, aiming to improve the utili
On July 28, 2026, 1Inch, a leading DEX aggregator, announced the launch of its Aqua protocol. This new initiative aims to streamline liquidity management by enabling users to provide liquidity across various DeFi protocols on multiple blockchains simultaneously. The key feature is that assets remain in the user's wallet until trade settlement, offering flexibility and enhanced capital utilization.
Aqua supports 13 different blockchain networks including Ethereum (ETH), Arbitrum (ARB), Base, Robinhood Chain, and BNB Chain (BNB). This broad support allows for a more unified approach to liquidity provision across diverse DeFi ecosystems. The protocol includes components such as an on-chain registry, wallet-backed automated market making strategies, atomic settlement mechanisms, and user-friendly position management tools.
According to 1Inch's spokesperson, users can advertise $10,000 of liquidity across three protocols for a total value of $30,000. However, only $10,000 in simultaneous trades are possible with the funds at any given time. This approach resembles coordinated overbooking and could potentially improve capital utilization if it is unlikely to be called upon simultaneously by multiple operations.
In addition to its launch, 1Inch plans to allocate 500,000 USDC for incentives alongside 10 million 1INCH tokens (worth approximately $825 at the time of writing) to promote Aqua's adoption. The initiative is designed to accelerate liquidity growth and swap activity across supported pairs.
The move by 1Inch comes after co-founder Anton Bukov was reportedly fired in November 2025 for pushing for changes in company management, highlighting internal tensions within the organization. Despite this, the launch of Aqua represents a significant step towards enhancing interoperability and liquidity in the DeFi space.
For traders and investors, the implications are clear: increased flexibility and potentially higher returns through better capital utilization. However, it remains to be seen how widely adopted Aqua will become among users and whether its innovative approach can outperform existing solutions in terms of efficiency and user experience.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.