1inch Unveils Protocol Letting Multiple DeFi Strategies Share the Same Capital
Decentralized exchange (DEX) aggregator 1inch has introduced Aqua, a new liquidity protocol designed to let DeFi applications share the same capital base across multiple strategies without compromising user custody.
Developers can now access the Aqua software development kit (SDK), libraries and documentation on GitHub, with a full front end set to arrive in early 2026, according to a press release shared with CoinDesk.
Aqua introduces what 1inch calls a “shared liquidity layer,” allowing capital from a single wallet to back several trading strategies at once. Typically, users must choose one strategy, locking their funds into a specific smart contract.
With Aqua, those same assets remain in the user’s wallet, and strategies only tap into them when trades are executed.
"Aqua solves liquidity fragmentation for market makers by multiplying effective capital. From now on, the only limit to your capital efficiency is your strategy," 1inch co-founder Anton Bukov said. "It's time to help liquidity providers unleash their potential."
In practical terms, a liquidity provider could authorize their tokens for multiple strategies, like automated market makers (AMMs), stable swap pools or custom logic, all at the same time. Each strategy operates with its own rules and access limits, tracked by Aqua’s accounting system.
The developer preview opens the door to early experimentation. Builders can create their own strategies or use 1inch’s partner protocol, SwapVM, to plug into pre-built ones.
This model could improve both capital efficiency — how much liquidity one wallet can provide, and utility efficiency, how many DeFi roles the same capital can play at once. Since funds are not locked in a pool, users can simultaneously provide liquidity, vote in governance, or post collateral on lending platforms.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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