1inch announced the public launch of Aqua, a non‑custodial protocol that enables a single wallet balance to serve multiple liquidity positions without locking assets.

Protocol purpose and mechanics

Aqua is designed to let users allocate the same token balance across several decentralized exchange positions while retaining on‑chain custody and tradability of assets. The protocol separates settlement and exposure, enabling markets to reference a shared balance while avoiding duplicate token transfers between pools.

Incentives and initial rewards

Alongside the launch 1inch opened the 1inch Network Incentives program to encourage initial liquidity provision and adoption across supported venues. The program allocates 10 million 1INCH and $500,000 USDC as rewards to participating liquidity providers across the network.

Supporting research and efficiency claims

According to a Dune study commissioned by 1inch, about 85% of concentrated liquidity on major decentralized exchanges in the first half of 2026 was used inefficiently. The company expects Aqua to improve capital efficiency by reducing redundant position funding and enabling more dynamic capital allocation.

1inch positions Aqua as a shared liquidity layer that preserves non‑custodial control while aiming to lower the capital required to maintain multiple active liquidity strategies. The protocol’s adoption and the effects on on‑chain liquidity fragmentation will become measurable as incentives roll out and liquidity providers integrate the system.