How 1inch Aqua Addresses DeFi’s Fragmented Liquidity Across 13 Chains
1inch has officially launched its liquidity protocol, Aqua, across 13 EVM-compatible blockchains. The move aims to solve a major issue in decentralized finance (DeFi): the inefficiency of capital due to fragmented pools on different chains. By allowing providers to quote multiple positions without transferring assets into smart contracts, Aqua offers improved capital efficiency and control over liquidity. Unlike traditional automated market makers (AMMs), Aqua uses a registry-based model where users register their wallet balances as backing for quoted trades. This preserves custody of the funds while enabling them to support various trading opportunities across chains simultaneously. The protocol executes swaps only when matching pre-stated terms, pulling assets directly from providers' wallets at execution time. The launch includes Ethereum, Arbitrum, Base, BNB Chain, Optimism, Polygon, and Robinhood Chain among others. To incentivize liquidity provision on all 13 networks, the 1inch Foundation is offering a reward program worth 10 million 1INCH tokens and 500,000 USDC.
Topics: 1inch Aqua DeFi innovation EVM chains liquidity aggregation