1inch launches Aqua, a capital-sharing liquidity protocol

Decentralized exchange 1inch has launched Aqua, a new liquidity protocol designed to allow multiple DeFi applications to share the same capital, CoinDesk reported. Unlike traditional models where user funds are locked in specific smart contracts, Aqua introduces a shared liquidity layer. This allows user assets to remain in their wallets and only be utilized when a trade is executed. As a result, users can simultaneously provide liquidity, participate in governance votes, and offer their assets as collateral.