Aqua Shared Liquidity Protocol Lets DeFi Wallets Run Multiple Strategies

The new Aqua shared liquidity design from 1inch aims to let one DeFi wallet power several strategies at once while keeping user funds under self-custody.

How does 1inch’s Aqua protocol reshape DeFi liquidity?

Decentralized exchange aggregator 1inch has introduced Aqua, a liquidity protocol that lets DeFi applications share the same capital base across multiple strategies without compromising user custody.

The launch was revealed on 17 November 2025. Typically, users must lock assets into a single smart contract and choose only one strategy at a time.

Aqua changes this model by introducing a so-called shared liquidity layer. With this architecture, capital from a single wallet can support several trading strategies simultaneously. However, the funds technically remain in the users wallet rather than being parked in multiple pools.

Instead of pre-depositing capital, strategies only access funds at the moment trades are executed. That said, users retain continuous control over their assets, because custody never leaves their address except during actual interactions with a strategy.

What is the Aqua shared liquidity layer in practice?

According to 1inch, the Aqua shared liquidity layer allows a single capital base to be reused across multiple roles. For example, liquidity can back automated market makers, stable swap pools, or custom logic at the same time. Moreover, each strategy still operates under its own rules and access limits.

These limits are tracked through Aqua7s internal accounting system, which records how much capital each strategy is allowed to draw at any moment. However, underlying tokens are not siloed into individual pools. This seeks to reduce liquidity fragmentation that has long plagued on-chain market makers.

How can developers integrate the 1inch Aqua protocol?

Developers already have access to the Aqua SDK, libraries, and documentation on GitHub. The current release is a developer preview, and a complete front-end interface is scheduled to arrive in early 2026. Moreover, the toolkit is designed so builders can plug Aqua into existing DeFi apps with minimal friction.

Using the available resources, teams can construct their own strategies or integrate ones built by partners. In particular, 1inch highlights SwapVM as a partner protocol that lets builders assemble strategies from pre-built components. However, teams can also start from scratch if they want bespoke logic.

This early-access phase is meant to foster experimentation. That said, it also gives auditors and infrastructure providers time to test how Aqua interacts with different chains and existing yield platforms.

How do users authorize tokens for multiple strategies?

In practical terms, a liquidity provider can authorize tokens for several strategies at once. They might support AMMs, stable swap pools, or fully custom strategies while using a single wallet balance. Moreover, each strategy only receives temporary access when its trades are executed.

From the user perspective, they grant permissions that define which protocol can draw from their wallet, under what conditions, and up to which limit. However, those approvals are managed through Aqua’s accounting system so that strategies cannot exceed the capital caps the user has set.

This design aims to make it easier to rebalance or exit positions quickly, since funds are not hard-locked in multiple smart contracts. That said, users must still manage on-chain approvals carefully, as with any DeFi protocol that can move assets from their wallet.

Why is capital efficiency in DeFi central to Aqua7s design?

The protocol targets both capital efficiency and how much liquidity a single wallet can deploy, and also and utility efficiency, meaning how many roles the same capital can play at once. Under the typical model, capital locked in a liquidity pool cannot also serve as collateral or voting power.

With Aqua, users can, in theory, provide liquidity, vote in governance, and post collateral for lending with the same funds. Moreover, this is possible because assets remain in the wallet and are only tapped when a strategy interaction occurs, rather than being continually locked in a pool.

This could help DeFi participants consolidate their portfolios while keeping them more actively deployed. However, the approach will still depend on robust risk controls, since multiple protocols may be able to draw on the same capital base.

Aqua: what are the broader implications for DEX aggregator 1inch and DeFi?

For the DEX aggregator 1inch, Aqua offers a chance to deepen its role in the broader DeFi stack. It moves beyond routing trades toward coordinating how capital itself is allocated across strategies. Moreover, it reinforces the project’s positioning as infrastructure rather than a single-purpose application.

Industry observers expect that a successful rollout could influence how new yield platforms are built. Protocols may begin designing natively for shared liquidity rather than isolated pools. However, adoption will depend on developers embracing the model and on wallet providers offering intuitive interfaces for these complex permissions.

As the developer preview progresses toward the planned early 2026 front end, attention will focus on real-world integrations and security audits. If they prove resilient, the aqua shared liquidity architecture could become a reference model for how DeFi handles capital in the next cycle.