Decentralized exchange aggregator 1inch has launched Aqua, its shared liquidity layer, to all users, expanding access to a protocol designed to connect liquidity across fragmented decentralized exchange (DEX) markets. The release comes about eight months after Aqua was first made available only to developers.

The protocol is now operational across 13 Ethereum Virtual Machine (EVM)-compatible blockchain networks, including Ethereum, Arbitrum, Base, BNB Chain, and Robinhood Chain. The public rollout follows the earlier developer launch, although the user-facing interface had originally been expected in the first quarter of the year.

Aqua is intended to provide a shared liquidity layer that enables decentralized trading across multiple blockchain networks without requiring liquidity providers to deposit assets into a centralized pool.

Registry-Based Model Targets Capital Efficiency

Unlike conventional decentralized finance (DeFi) liquidity pools, Aqua functions as a registry that references assets held in users’ wallets rather than storing tokens inside a smart contract. Liquidity providers authorize token balances and create trading positions based on those holdings. When a trade meets the predefined conditions of a position, the protocol transfers the required tokens directly from the provider’s wallet and completes settlement, including fees, in a single transaction. For users accustomed to locking assets into pools, the wallet-based structure is meant to preserve self-custody while still making the same balance available for trading activity across more than one market.

According to 1inch, approvals are configured separately for each supported token and blockchain network, and users can revoke permissions whenever they choose.

The company also said every transaction executed through Aqua is processed by a verified counterparty, which it described as an approved market maker or arbitrage participant whose eligibility is validated on-chain at the time of execution. 1inch said this verification process is part of its effort to build a more controlled and compliance-oriented decentralized finance infrastructure.

New Liquidity Structure

1inch said Aqua’s architecture is designed to reduce certain risks associated with liquidity provision. The company explained that because each liquidity position is owned by a single provider, attacks involving just-in-time fee extraction become significantly more difficult, with the potential cost of such strategies estimated at as much as 44% of a provider’s fee income.

The protocol also showed how its structure allows the same wallet balance to support multiple trading positions without borrowing assets. In one example, a wallet containing $100,000 in tokens could back positions collectively quoting $300,000 in liquidity. However, 1inch said trades can only be executed against assets actually available in the wallet, meaning exposure remains limited to the provider’s existing holdings rather than the combined quoted value of all positions.

"Liquidity providers: it’s time to wake up. Use 1inch Aqua to find more activity in more markets, without letting your tokens out of your wallet. Risk-controlled execution meets full self-custody. No, you aren’t dreaming. Here’s how it works: pic.twitter.com/F7CJeikteJ" — 1inch (@1inch) July 28, 2026

The protocol’s design allows multiple liquidity positions to reference the same wallet balance while limiting trade execution to assets that are actually available, removing the need for token deposits into liquidity pools.

To encourage early participation, the 1inch Foundation has allocated 10 million 1INCH tokens as liquidity provider incentives. The 1inch decentralized autonomous organization has also committed an additional 500,000 USDC, with both incentive programs scheduled to be distributed through the Merkl platform.

Audits Before Public Release

Before opening Aqua to the public, 1inch said the protocol underwent eight independent security audits conducted by firms including OpenZeppelin, Nethermind, Hexens, and Bailsec.

The company also cautioned that Aqua is intended for experienced users. It said liquidity providers remain exposed to market volatility and smart contract risks, while trading fees are not guaranteed and asset prices may move against open positions.

During Aqua’s earlier developer release, a spokesperson for the company said the protocol could improve capital efficiency, deepen liquidity across decentralized finance markets, and reduce fragmentation among decentralized exchanges.