Aqua developer release: open architecture to unlock DeFi liquidity

Aqua is the new liquidity layer from 1inch, built to transform how capital and yield strategies work in DeFi. We’re releasing to Web3 developers first, so they can start building and verify the possibilities of this radical new approach.

Aqua, the new protocol developed by 1inch, revolutionizes liquidity access and capital efficiency across decentralized finance.

Simply put: with Aqua, you can share assets across multiple strategies, simultaneously - without locking, and keeping your funds in your wallet.The result? Strategies don’t have to compete for liquidity anymore - so every network sees greater efficiency and potential transaction volume. 

And every wallet becomes a dynamic, self-custodial resource with the potential for unlimited capital efficiency. 

Aqua’s open architecture will transform DeFi market making into a seamless ocean of shared liquidity.

Start building for the next era in DeFi

Aqua’s frontend is planned for release next year.  But we’re opening access to Web3 devs now, so you can: 

• Explore, optimize, verify

With the Aqua SDK, libraries and full documentation, implementation is easy - so you can focus on exploring new possibilities.

• Build from scratch or plug-and-play

Aqua is ready for you to build and test new approaches - and you can use the SwapVM partner protocol to assemble strategies from our library of instructions, and ship faster.

• Help shape the product

We’re offering bounties of up to US$100,000 for key optimization contributions and bug discovery, awarded at 1inch’s sole discretion and subject to the Aqua Bounty Program Terms. More details here. 

Here’s everything you need to start building on Aqua:

Aqua white paper

http://1inch.com/assets/1inch-aqua-white-paper.pdf

Smart contracts

Aqua: 0x499943e74fb0ce105688beee8ef2abec5d936d31

SwapVM: 0x8fdd04dbf6111437b44bbca99c28882434e0958f

Github

App template: https://github.com/1inch/aqua/

SDK repo: https://github.com/1inch/sdks/tree/master/typescript/aqua

Forget TVL. Discover Total Value Unlocked. 

Funds locked in old-style pools are restricted to single strategies. Liquidity providers face tough decisions on where to commit, facing opportunity cost and inefficiency whatever choice they make. So until now, strategies and protocols have been forced to compete for TVL.

Aqua changes that.

Aqua turns each wallet into its own self-custodial liquidity pool that applies multiple strategies to the same assets. Each strategy accesses liquidity based on its own rules and conditions, and anyone can interact with it to execute an atomic swap according to those rules.

The result: the same capital can power multiple strategies at once.

Here’s an example: 

Say Rick holds USDC, USDT and ETH. With Aqua, he can combine concentrated liquidity strategies for USDC <> ETH and USDT<> ETH - then add a stable pair position for USDC <> USDT. That gives him a loop of funds - and doubles the effective liquidity he has deployed, because each token is active in two strategies simultaneously. And crucially, Rick can allocate his full balance of each token to every relevant strategy. That means that if, for instance, the USDC<>ETH position goes out of range, his other positions will still earn yield (though it will still be important to manage illiquid positions to avoid impermanent losses). 

Connect to deeper liquidity

Let’s recap the main benefits Aqua offers for users.

Shared liquidity, not competition for it.

Different strategies can access the same tokens. Liquidity providers no longer need to split or lock funds across pools.

Deeper liquidity across the ecosystem.

Shared liquidity means better availability for all networks, meaning that even smaller networks will be able to reliably support larger and more efficient transactions.

Unlimited capital efficiency.

Multiple strategies can run off a single asset. Capital fragmentation can be reduced, which may compound efficiency and improve overall capital utilization, depending on market conditions and strategy design.

No locking. Self-custody by design.

Your assets always stay in your wallet and under your control. Strategies pull and push (return) assets with atomic execution - so nothing moves until both sides of the transaction are complete. For institutional or market-making setups, custodial or shared-balance configurations can also be implemented via dedicated smart contracts or custodial solutions, but Aqua’s core architecture remains non-custodial.

Developer simplicity.

No more deposit, withdrawal, or accounting logic. Developers simply query Aqua for balances and build products on top, rather than managing funds directly.

The developer release: build on Aqua early

Start today: experiment, integrate and discover what’s possible with shared access to DeFi liquidity.Create your own products on Aqua, test performance, submit feedback and help shape the next generation of DeFi liquidity.

You can also join the conversation on our new, dedicated X account for devs: @1inchdevs.

Discover total value unlocked with 1inch Aqua. Join the first wave and start building today!

This announcement is intended for Web3 developers and other professional users. It does not constitute investment, legal, or tax advice. Interaction with smart contracts involves risks, including possible loss of digital assets. Features and timelines described here are subject to change, and access to Aqua may be limited or restricted in certain jurisdictions under applicable law.