1inch, a prominent decentralized finance (DeFi) protocol, has recently unveiled its latest shared liquidity protocol, Aqua. This innovative protocol is designed to enhance efficiency and unlock liquidity for users across various networks.
Sergej Kunz, the co-founder and CEO of 1inch, participated in a discussion with TheStreet Roundtable to shed light on the launch of Aqua and elaborate on the specific areas where these efficiency gains are expected to materialize.
Aqua’s efficiency is being positioned as a groundbreaking model for liquidity provisioning tailored for the burgeoning wave of tokenized assets. Kunz emphasized the increasing importance of liquidity for Real World Assets (RWAs) entering the DeFi space, highlighting the necessity for robust infrastructure to ensure adequate liquidity.
According to a recent study commissioned by 1inch, approximately 80% of liquidity on decentralized exchanges remains idle at any given time, amounting to around $1.6 billion that is not being utilized effectively. This inefficiency is particularly detrimental for thin and emerging markets such as tokenized RWAs.
One of the key use cases envisioned for Aqua involves tokenized equities, which have witnessed significant growth on a global scale, albeit not yet accessible to U.S. investors. Kunz illustrated the potential for creating trading pairs between various tokenized stocks, enabling users to engage in trading positions across different assets and capitalize on the volume generated by the movement of RWAs.
Traditional brokerages typically facilitate trading against fiat currencies, limiting the scope for direct asset-to-asset markets. Aqua aims to address this limitation by enabling a network where one wallet’s holdings can support multiple pairs simultaneously, with liquidity providers earning fees on each transaction.
Kunz emphasized the need for Aqua in facilitating efficient markets for RWAs, particularly in scenarios where assets are isolated in single two-token-pair pools. By enabling continuous pricing and market access between different assets, Aqua offers a novel approach to tokenized equities trading that goes beyond conventional stocks-vs-dollars trading.
This article was originally published by TheStreet on July 31, 2026, in the Innovation section. For more updates and insights on the latest developments in the DeFi space, stay tuned to TheStreet for valuable information and analysis.
