1inch expands its Aqua shared liquidity protocol to 13 EVM-compatible chains, including Ethereum, Base, and Arbitrum. Aqua allows liquidity providers to back multiple positions using a single wallet balance, addressing research showing that 85% of $1.84 billion in DeFi liquidity sat underutilized in early 2026. The launch features a $1.37 million incentive program funded by the 1inch Foundation and DAO.
Aqua protocol multi-chain expansion
- ▪The Aqua protocol underwent eight independent security audits prior to its multi-chain expansion.
- ▪1inch expanded its Aqua shared liquidity protocol to 13 Ethereum Virtual Machine-compatible blockchains on July 28, 2026.
- ▪The Aqua protocol public interface supports chains including Ethereum, Base, BNB Chain, Arbitrum, and Robinhood Chain.
Shared liquidity mechanism
- ▪Aqua allows liquidity providers to keep assets in their own wallets, using one balance to back multiple positions across different strategies.
- ▪In the Aqua protocol, orders execute only against assets held in the wallet, and a swap fails if the balance cannot cover it.
- ▪Liquidity providers using the Aqua protocol still face price movements, impermanent loss, and smart-contract risk.
Underutilized DeFi liquidity research
- ▪The 1inch-commissioned research showed that roughly $542 million sat fully outside active trading ranges in an average week, missing an estimated $150 million in annual fees.
- ▪Research commissioned by 1inch found that 85% of $1.84 billion tracked across major concentrated-liquidity exchanges was underutilized in the first half of 2026.
Launch incentive program
- ▪The 1inch Foundation committed 10 million 1INCH tokens and the 1inch DAO added $500,000 in USDC to the Aqua liquidity incentive program.
- ▪The Aqua launch features a three-month liquidity incentive program distributed through Merkl, valued at approximately $1.37 million.
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