1inch introduced Aqua, a shared liquidity model aimed at reducing fragmentation in decentralized finance. The protocol allows developers to create strategies without managing funds directly, enhancing capital efficiency while maintaining user control over assets. Bounties of up to $100,000 are available for developers contributing to the project.

A report from 1inch reveals that 83-95% of liquidity in major DeFi pools like Uniswap and Curve sits idle, costing retail liquidity providers. Many face losses due to impermanent loss, with net deficits exceeding $60 million. 1inch's Aqua protocol aims to optimize liquidity usage and reduce fragmentation.