1inch Launches New Era in Liquidity Management: $1.37 Million Incentive Across 13 Networks
Decentralized exchange aggregator 1inch has launched the Aqua protocol on 13 different networks, allowing liquidity providers to support multiple positions with a single balance while keeping their assets in their own wallets.
1inch, one of the leading platforms in the cryptocurrency world, has announced the Aqua protocol, ushering in a new era in liquidity management. Activated on 13 different Ethereum Virtual Machine (EVM)-compatible chains, this protocol allows users to keep their assets in their own wallets instead of locking them into smart contracts. This way, users maintain full control over their assets while simultaneously developing different strategies.
Research conducted by 1inch revealed that approximately 85% of the $1.84 billion liquidity on major exchanges in the market is used inefficiently. This situation translates to an annual loss of $150 million in transaction fees for liquidity providers. Co-founder Sergej Kunz emphasizes that thanks to Aqua, a single balance can support multiple positions across different strategies. For example, a $100,000 balance in a wallet can simultaneously feed three different positions totaling $300,000.
Efficient Liquidity Management with 1inch Aqua
The protocol is available on popular networks such as Ethereum, Base, BNB Chain, and Arbitrum, as well as on the Robinhood Chain. In this system, users can create full-range or concentrated liquidity positions. On the security front, Aqua has proven its robustness by passing eight different independent audits. However, liquidity providers must always keep risks such as price fluctuations and impermanent loss in mind.
Million-Dollar Incentive Program Launched
To accelerate the adoption of the new protocol, an incentive program worth approximately $1.37 million has been launched. The 1inch Foundation has allocated 10 million 1inch (1INCH) tokens for this process, while the platform’s governance unit, the DAO, contributed 500,000 USDC. These rewards, which will be distributed through the Merkl platform, will be offered to liquidity providers for three months.