1inch Unveils Aqua, a Shared Liquidity Model Targeting DeFi

1inch, a well-known decentralized exchange (DEX) aggregator, has launched Aqua. According to the announcement, the new shared liquidity model will solve a key problem in decentralized finance (DeFi), which is liquidity fragmentation. 

As liquidity spreads across many blockchains, pools, and protocols, users and developers face increasing costs and efficiency losses. Aqua aims to fix this by offering the first shared liquidity engine in DeFi, creating a unified layer for easier access and better coordination.

Benefits of 1inch’s New Model

To promote its adoption, 1inch has released an early version for developers. This allows builders to access Aqua’s software development kit (SDK), technical libraries, and documentation. During this early access, developers can explore Aqua’s design, test its features, and help shape the final version before it is fully launched.

One of Aqua’s key features is the flexibility it provides. Developers can create their own strategies from scratch, customizing how liquidity works for their specific needs. Alternatively, they can use the SwapVM instruction library, which offers prebuilt components, making it easier to set up new channels and liquidity pathways. 

This approach helps both experienced developers looking for customization and teams that want ready-made modules to speed up development. Meanwhile, 1inch has announced bounty rewards of up to $100,000. This will help developers to participate early. Additionally, these rewards will go to those who make valuable contributions to Aqua’s infrastructure, tools, or ecosystem growth. 

1inch Revolutionize Cross-Chain Crypto Swaps

In 2024, 1inch introduced Fusion+ to make cross-chain cryptocurrency swaps effortless and secure. As reported by TheCoinRise, this innovative upgrade fully integrates into 1inch’s decentralized application (dApp) and wallet. It is also a notable solution to DeFi’s most persistentchallenges.

Navigating cross-chain swaps has long been a thorny issue in the DeFi space. At its core, Fusion+ utilizes atomic swap technology to ensure trades are completed in full or canceled without risk of partial transactions. Fusion+ also guarantees a seamless user experience, removing uncertainties associated with incomplete swaps.

1inch network makes it easy for users to select tokens, confirm transactions, and let Fusion+ finish the rest. It uses Dutch auctions to match users with market makers or resolvers who compete to provide the best rates.

1inch Suffers a Smart Contract Exploit

Despite 1inch being a major player in the DeFi space, it recently suffered a security breach, which resulted in over $5 million in losses. The platform explained that the attack targeted a weakness in its resolver smart contracts. The resolver helps process and complete trades on the platform.

However, the team said the exploits affected only resolvers still using the old Fusion v1 system. In response to the exploit, 1inch took action to limit further damage and improve security. The team helped affected resolvers secure their systems and urged them to update their smart contracts to prevent further attacks.

Furthermore, the team started a bug bounty program to find and fix security issues. It also offered rewards from $100 to $500,000 for reporting problems.