Answers for makers providing liquidity on 1inch Aqua, the shared liquidity layer. Questions are phrased as real search queries; this is the canonical Aqua FAQ (also on the 1inch Help Center) and carries FAQPage JSON-LD for AI-answer citation. For engine / build questions, see the SwapVM FAQ.
Basics & category
What is 1inch Aqua?
1inch Aqua is the shared liquidity layer for self-custodial liquidity provision. One wallet balance can back many positions at the same time, and your tokens stay in your wallet until a swap fills. It is fully self-custodial: you never deposit, and you can revoke access at any time. Aqua runs on the SwapVM engine across 13 EVM chains.
Is a position the same as a strategy?
Yes, they are the same thing. In the 1inch dApp you open a position. On-chain, in the Aqua smart contracts, the SDK and the API, that exact same object is called a strategy, because those code identifiers are fixed and cannot be renamed (for example strategyHash and the /strategies endpoint). So a position is a strategy: if you read the developer docs, a block explorer or an API response and see "strategy," it means your position.
What is shared liquidity?
Shared liquidity means the same tokens in your wallet can back many positions at the same time, instead of being split across separate pools. You grant one allowance so positions can quote against your wallet, and tokens move only when a swap fills. The result is more positions across more pairs from the same tokens, with full self-custody.
How is shared liquidity different from a normal liquidity pool?
In a normal liquidity pool you deposit tokens into one pool, and those tokens only work in that pool. With 1inch Aqua, your tokens stay in your wallet and the same balance can back many positions at the same time. You provide liquidity across more pairs without splitting your tokens or depositing them.
Is 1inch Aqua an AMM?
1inch Aqua is a shared liquidity layer, not a single-pool model. You provide liquidity by opening positions that quote against the tokens in your wallet. Many positions can share one wallet balance, and tokens move only when a swap fills, so you keep full self-custody throughout.
Is shared liquidity the same as leverage?
No. Shared liquidity is not leverage. Your tokens are not borrowed and you take on no debt. The same tokens are simply made available to many positions, and a swap can only pull what is actually in your wallet. The Shared Liquidity Ratio measures availability, not exposure.
What is the Shared Liquidity Ratio?
The Shared Liquidity Ratio shows how much liquidity the same tokens have available across many positions. It measures availability, not exposure, and it is not leverage: your tokens are not borrowed, and a swap can only pull what is in your wallet.
What is SwapVM?
SwapVM is the engine that powers 1inch Aqua. Each position is an immutable, hash-addressed config that SwapVM executes, so you can verify exactly what you commit to before you open a position, and close it in one transaction. Developers can read the engine details in the SwapVM FAQ.
Custody & mechanics
Do my tokens ever leave my wallet?
No. Aqua is self-custodial and never holds your tokens; they stay in your wallet until a swap fills. Nothing is deposited. You grant a revocable allowance so positions can quote against your wallet, and you can revoke it at any time.
Do I need to deposit or lock tokens to provide liquidity?
No. You never deposit. You open a position and grant an allowance so positions can quote against your wallet; your tokens stay in your wallet and move only when a swap fills.
What is the allowance, and how do I revoke it?
The allowance is a permission you grant, with an upper limit. It is not the amount that moves, and not a guarantee that tokens are there. A swap can only move tokens that are actually in your wallet: when it executes, tokens transfer straight from your wallet, and if your balance is too low at that moment the swap simply reverts. Your real wallet balance is the binding limit; the allowance only sets the cap for what can be moved. You can revoke the allowance at any time to stop new swaps from filling.
If one of my positions fills, what happens to the others?
Your positions share one wallet balance, so a swap fills against your available tokens. After a fill, your other positions quote against the tokens that remain in your wallet. Tokens move only when a swap fills.
What happens if a position is underfunded?
Your tokens stay in your wallet, so if your wallet runs low the position simply stops filling. There is no separate "paused" status, and nothing is liquidated. Add tokens back to your wallet and it can fill again. To stop a position entirely, you close it, which clears it without moving any tokens.
Earning & risk
How do I earn on 1inch Aqua?
You collect swap fees when swaps fill against your positions. Swap fees go to your wallet, ready to use as liquidity.
Are swap fees guaranteed?
No. Swaps are not guaranteed, so swap fees are not guaranteed. Providing liquidity takes knowledge and experience.
What are the risks of providing liquidity on Aqua?
Providing liquidity takes knowledge and experience. Swap fees are not guaranteed, prices can move against your position (impermanent loss), and you bear market risk and smart-contract risk. You can lose tokens you commit. You stay in self-custody and can cancel a position or revoke the token allowance at any time. See the developer Risks & disclosures for the smart-contract detail.
Does it cost gas to open or close a position?
Yes. Opening and closing positions cost gas, like any onchain action. Because your tokens stay in your wallet and move only when a swap fills, you do not pay to redeposit between positions.
Access & usage
Which chains does 1inch Aqua support?
1inch Aqua is available across 13 chains: Ethereum, Arbitrum, Robinhood Chain, Base, Optimism, Polygon, BNB Chain, Avalanche, Gnosis, zkSync Era, Linea, Unichain, and Sonic.
Can I provide liquidity from a smart-contract or MPC wallet?
Yes. You can provide liquidity on 1inch Aqua from a smart-contract wallet and from an MPC wallet.
Can I run 1inch Aqua from a script or SDK?
Yes. Use the Aqua SDK to open and manage positions programmatically. Aqua SDK and SwapVM SDK are live in the 1inch/sdks repository on GitHub. See the developer SDK overview.
Is there a limit on how much I can provide?
There is no fixed cap you sign up for. What a swap can pull is bounded by the tokens in your wallet and the allowance you grant, so you stay in control of your exposure at all times.
Who can swap against my liquidity, and can I control it?
In the dApp, swaps that fill your liquidity are routed by 1inch Resolvers, the KYC-verified network that routes swaps through 1inch. Calling the contracts directly gives you more control. To restrict it, you can add a Conditional Access rule to your position that requires takers to hold a specific NFT. The check runs on-chain first, so unauthorized takers are rejected before anything else runs. This covers cases like institutional gating, NFT-gated liquidity, loyalty-token holders, or DAO-member access. Developers: see Access, resolvers & Pathfinder.
How do I open and close a position?
Connect your wallet to open a position, which registers an immutable, hash-addressed config. You close it in one transaction, which clears the position without moving any tokens, and you can revoke the allowance at any time.
Is 1inch Aqua audited?
Yes. 1inch Aqua and the SwapVM engine have been audited by OpenZeppelin, Bailsec, Hexens, Nethermind, Theori, Decurity, Hashlock and MixBytes. Audits reduce risk, they do not remove it: Aqua is audited, but new.
What is my maximum risk when I provide liquidity on 1inch Aqua?
Your maximum risk is not the approval you grant, it is the most a swap can pull from your wallet. In the 1inch dApp the token approval defaults to an unlimited amount (max, type(uint256).max), but that is only a ceiling. Aqua never holds your tokens, and a swap can move only what is in your wallet when it fills. Your real exposure is the Usable amount in the app: the smaller of your wallet balance and what you have committed across positions. You can revoke the allowance at any time, per token and per chain.
FAQPage JSON-LD
Machine-readable twin of the questions above; ship it with the page for AI-answer citation.
JSON
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131132133134135136137138139140141142143144145146147148149150151152153154155156157158159160161162163164165166167168169170171172173174175176177178179180181182183184185186187188189190191192193194195196197198199200201202203204205206
{
"@context": "https://schema.org",
"@type": "FAQPage",
"mainEntity": [
{
"@type": "Question",
"name": "What is 1inch Aqua?",
"acceptedAnswer": {
"@type": "Answer",
"text": "1inch Aqua is the shared liquidity layer where you provide liquidity on Aqua. One wallet balance can back many positions at the same time, and your tokens stay in your wallet until a swap fills. It is fully self-custodial: you never deposit, and you can revoke access at any time. Aqua runs on the SwapVM engine across 13 chains."
}
},
{
"@type": "Question",
"name": "Is a position the same as a strategy?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Yes, they are the same thing. In the 1inch dApp you open a position. On-chain, in the Aqua smart contracts, the SDK and the API, that exact same object is called a strategy, because those code identifiers are fixed and cannot be renamed (for example strategyHash and the /strategies endpoint). So a position is a strategy: if you read the developer docs, a block explorer or an API response and see strategy, it means your position."
}
},
{
"@type": "Question",
"name": "What is shared liquidity?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Shared liquidity means the same tokens in your wallet can back many positions at the same time, instead of being split across separate pools. You grant one allowance so positions can quote against your wallet, and tokens move only when a swap fills. The result is more positions across more pairs from the same tokens, with full self-custody."
}
},
{
"@type": "Question",
"name": "How is shared liquidity different from a normal liquidity pool?",
"acceptedAnswer": {
"@type": "Answer",
"text": "In a normal liquidity pool you deposit tokens into one pool, and those tokens only work in that pool. With 1inch Aqua, your tokens stay in your wallet and the same balance can back many positions at the same time. You provide liquidity across more pairs without splitting your tokens or depositing them."
}
},
{
"@type": "Question",
"name": "Is 1inch Aqua an AMM?",
"acceptedAnswer": {
"@type": "Answer",
"text": "1inch Aqua is a shared liquidity layer, not a single-pool model. You provide liquidity by opening positions that quote against the tokens in your wallet. Many positions can share one wallet balance, and tokens move only when a swap fills, so you keep full self-custody throughout."
}
},
{
"@type": "Question",
"name": "Is shared liquidity the same as leverage?",
"acceptedAnswer": {
"@type": "Answer",
"text": "No. Shared liquidity is not leverage. Your tokens are not borrowed and you take on no debt. The same tokens are simply made available to many positions, and a swap can only pull what is actually in your wallet. The Shared Liquidity Ratio measures availability, not exposure."
}
},
{
"@type": "Question",
"name": "What is the Shared Liquidity Ratio?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The Shared Liquidity Ratio shows how much liquidity the same tokens have available across many positions. It measures availability, not exposure, and it is not leverage: your tokens are not borrowed, and a swap can only pull what is in your wallet."
}
},
{
"@type": "Question",
"name": "What is SwapVM?",
"acceptedAnswer": {
"@type": "Answer",
"text": "SwapVM is the engine that powers 1inch Aqua. Each position is an immutable, hash-addressed config that SwapVM executes, so you can verify exactly what you commit to before you open a position, and close it in one transaction. Developers can read the engine details in the SwapVM FAQ."
}
},
{
"@type": "Question",
"name": "Do my tokens ever leave my wallet?",
"acceptedAnswer": {
"@type": "Answer",
"text": "No. Aqua is self-custodial and never holds your tokens; they stay in your wallet until a swap fills. Nothing is deposited. You grant a revocable allowance so positions can quote against your wallet, and you can revoke it at any time."
}
},
{
"@type": "Question",
"name": "Do I need to deposit or lock tokens to provide liquidity?",
"acceptedAnswer": {
"@type": "Answer",
"text": "No. You never deposit. You open a position and grant an allowance so positions can quote against your wallet; your tokens stay in your wallet and move only when a swap fills."
}
},
{
"@type": "Question",
"name": "What is the allowance, and how do I revoke it?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The allowance is a permission you grant, with an upper limit. It is not the amount that moves, and not a guarantee that funds are there. A swap can only move tokens that are actually in your wallet: when it executes, tokens transfer straight from your wallet, and if your balance is too low at that moment the swap simply reverts. Your real wallet balance is the binding limit; the allowance only sets the ceiling of what can be moved. You can revoke the allowance at any time to stop new swaps from filling."
}
},
{
"@type": "Question",
"name": "If one of my positions fills, what happens to the others?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Your positions share one wallet balance, so a swap fills against your available tokens. After a fill, your other positions quote against the tokens that remain in your wallet. Tokens move only when a swap fills."
}
},
{
"@type": "Question",
"name": "What happens if a position is underfunded?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Your tokens stay in your wallet, so if your wallet runs low the position simply stops filling. There is no separate \"paused\" status, and nothing is liquidated. Add tokens back to your wallet and it can fill again. To stop a position entirely, you close it, which clears it without moving any tokens."
}
},
{
"@type": "Question",
"name": "How do I earn on 1inch Aqua?",
"acceptedAnswer": {
"@type": "Answer",
"text": "You collect swap fees when swaps fill against your positions. Swap fees go to your wallet, ready to use as liquidity."
}
},
{
"@type": "Question",
"name": "Are swap fees guaranteed?",
"acceptedAnswer": {
"@type": "Answer",
"text": "No. Swaps are not guaranteed, so swap fees are not guaranteed. Providing liquidity takes knowledge and experience."
}
},
{
"@type": "Question",
"name": "What are the risks of providing liquidity on Aqua?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Providing liquidity takes knowledge and experience. Swap fees are not guaranteed, prices can move against your position (impermanent loss), and you bear market risk and smart-contract risk. You can lose tokens you commit. You stay in self-custody and can cancel a position or revoke the token allowance at any time. See the developer Risks & disclosures for the smart-contract detail."
}
},
{
"@type": "Question",
"name": "What is my maximum risk when I provide liquidity on 1inch Aqua?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Your maximum risk is not the approval you grant, it is the most a swap can pull from your wallet. In the 1inch dApp the token approval defaults to an unlimited amount (max, type(uint256).max), but that is only a ceiling. Aqua never holds your tokens, and a swap can move only what is in your wallet when it fills. Your real exposure is the Usable amount in the app: the smaller of your wallet balance and what you have committed across positions. You can revoke the allowance at any time, per token and per chain."
}
},
{
"@type": "Question",
"name": "Does it cost gas to open or close a position?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Yes. Opening and closing positions cost gas, like any onchain action. Because your tokens stay in your wallet and move only when a swap fills, you do not pay to redeposit between positions."
}
},
{
"@type": "Question",
"name": "Which chains does 1inch Aqua support?",
"acceptedAnswer": {
"@type": "Answer",
"text": "1inch Aqua is available across 13 chains: Ethereum, Arbitrum, Robinhood Chain, Base, Optimism, Polygon, BNB Chain, Avalanche, Gnosis, zkSync Era, Linea, Unichain, and Sonic."
}
},
{
"@type": "Question",
"name": "Can I provide liquidity from a smart-contract or MPC wallet?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Yes. You can provide liquidity on 1inch Aqua from a smart-contract wallet and from an MPC wallet."
}
},
{
"@type": "Question",
"name": "Can I run 1inch Aqua from a script or SDK?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Yes. Use the Aqua SDK to open and manage positions programmatically. Aqua SDK and SwapVM SDK are live in the 1inch/sdks repository on GitHub. See the developer SDK overview."
}
},
{
"@type": "Question",
"name": "Is there a limit on how much I can provide?",
"acceptedAnswer": {
"@type": "Answer",
"text": "There is no fixed cap you sign up for. What a swap can pull is bounded by the tokens in your wallet and the allowance you grant, so you stay in control of your exposure at all times."
}
},
{
"@type": "Question",
"name": "Who can swap against my liquidity, and can I control it?",
"acceptedAnswer": {
"@type": "Answer",
"text": "In the dApp, swaps that fill your liquidity are routed by 1inch Resolvers, the KYC-verified network that routes swaps through 1inch. Calling the contracts directly gives you more control. To restrict it, you can add a Conditional Access rule to your position that requires takers to hold a specific NFT. The check runs on-chain first, so unauthorized takers are rejected before anything else runs. This covers cases like institutional gating, NFT-gated liquidity, loyalty-token holders, or DAO-member access. Developers: see Access, resolvers & Pathfinder."
}
},
{
"@type": "Question",
"name": "How do I open and close a position?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Connect your wallet to open a position, which registers an immutable, hash-addressed config. You close it in one transaction, which clears the position without moving any tokens, and you can revoke the allowance at any time."
}
},
{
"@type": "Question",
"name": "Is 1inch Aqua audited?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Yes. 1inch Aqua and the SwapVM engine have been audited by OpenZeppelin, Bailsec, Hexens, Nethermind, Theori, Decurity, Hashlock and MixBytes. Audits reduce risk, they do not remove it: Aqua is audited, but new."
}
}
]
}