1inch Launches Aqua Liquidity Protocol on 13 Blockchains
Summary
- 1inch said it launched Aqua, a protocol that lets a single pool of assets provide liquidity for multiple trading strategies, across 13 blockchains.
- The company said Aqua was designed to let liquidity providers use assets held in their wallets to set up three positions simultaneously with orders worth as much as $300,000.
- 1inch said 85% of $1.84 billion in liquidity in the first half was used inefficiently, and that it will run a liquidity provider rewards program totaling 100,000 1INCH and 500,000 USDC for three months.
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1inch, a decentralized exchange aggregator, has launched its Aqua protocol across 13 blockchains, allowing a single pool of assets to provide liquidity for multiple trading strategies.
CoinDesk reported on July 28 that Aqua was designed to let liquidity providers support multiple trading positions while keeping assets in their own wallets, rather than splitting funds across separate trading pools. Tokens leave the wallet only when a trade is executed.
Sergej Kunz, 1inch's co-founder, said users can keep tokens in self-custodied wallets while using a single balance to support positions across several strategies.
According to 1inch, a wallet holding $100,000 can set up three positions simultaneously with orders totaling as much as $300,000. That does not increase the user's actual holdings, and a trade will not be executed if the wallet balance is insufficient when an order is filled.
Aqua supports 13 Ethereum-compatible networks, including Ethereum, Base, BNB Chain, Arbitrum and Robinhood Chain.
1inch said the launch was prompted by research showing that 85% of the $1.84 billion in liquidity supplied to major exchanges in the first half was not used efficiently. On average, about $542 million a week sat outside the executable trading range, leading to an estimated $150 million in missed annual fee revenue.
Alongside the launch, the 1inch Foundation and its decentralized autonomous organization, or DAO, will run a liquidity provider rewards program for three months totaling 100,000 1INCH and 500,000 USDC.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.