1inch has introduced Aqua, a new shared liquidity system that allows users to deploy the same wallet balance across multiple DeFi positions without losing custody of their assets. Operating across 13 EVM-compatible networks, Aqua aims to solve inefficiencies in traditional liquidity pools by keeping funds in users' wallets until trades execute, thus improving capital efficiency and reducing fragmentation. The launch includes a 10 million 1INCH token incentive and 500,000 USDC from the 1inch DAO to encourage liquidity provision. Aqua's design also enhances security and risk management, with multiple audits completed and features to limit exposure to impermanent loss and market risks. This innovation could reshape DeFi liquidity by making capital use more flexible and user-controlled.
