1inch has launched Aqua, which it calls the first "shared liquidity protocol" — a design that effectively turns a user's own wallet into a self-custodial AMM.

Instead of locking funds into pool contracts, a single wallet balance can back many DeFi strategies at once. Liquidity is pulled atomically only at the moment a trade executes, so the same capital can be reused across strategies simultaneously.

"Aqua solves liquidity fragmentation for market makers by multiplying effective capital. From now on, the only limit to your capital efficiency is your strategy," said 1inch co-founder Anton Bukov. Built on the SwapVM protocol, Aqua aims to do for makers what 1inch's 2019 aggregator did for takers.

Aqua is a separate protocol from the 1inch aggregator, and no 1INCH token mechanic has been tied to it.