Despite impressive trade volumes, 1inch's struggle for profitability highlights DeFi's current limitations in generating sustainable revenue. 1inch routes over $800B in trades, co-founder says DeFi still too small to turn a profit.
1inch said August 27 that security researchers submitted 1,055 reports across six core HackenProof bug bounty programs during the first half of 2026. Of those submissions, 32 resulted in payouts, making continuous external testing a central part of 1inch's security strategy as the company expands its DeFi infrastructure.
1inch co-founder Sergej Kunz says DeFi's liquidity race is “all about efficiency” as Aqua tops $137.6M and protocols target idle capital.
1inch joined the SEAL Whitehat Safe Harbor Agreement, a legal framework designed to allow white hat hackers to intervene during active exploits without facing legal consequences. The adoption was approved through governance by the 1inch DAO and is recorded in document 1IP-104, which details the covered protocols, the designated recovery addresses, and the reward conditions.
The 1inch Aqua protocol introduces a liquidity provision model that differs from conventional solutions, allowing the same wallet balance to back multiple positions simultaneously. Unlike traditional liquidity vaults —such as those offered by Yearn and other automated managers—, where capital is deposited and committed to a specific strategy, Aqua keeps tokens in the user's wallet until a swap that requires them is executed.
1inch has rolled out a new shared liquidity layer called ‘Aqua', aiming to rethink how liquidity is supplied across decentralized finance (DeFi) by letting users deploy the same wallet balance across multiple positions without surrendering custody. The 1inch Foundation said Tuesday ET that Aqua is now available to the public as a self-custodial liquidity system operating from day one across 13 EVM-compatible networks.
Liquidity Model: Aqua Multichain lets providers use one wallet balance to back multiple positions, keeping tokens under user control until swaps execute. Utilization Data: Research found 85% of $1.84 billion in concentrated liquidity was underutilized, with $542 million outside active ranges and $150 million in missed annual fees. Aqua Multichain targets this inefficiency.
1inch launched Aqua publicly across 13 EVM chains, with a 10M 1INCH incentive program for shared, self-custodial DeFi liquidity provisioning.
The shared liquidity layer opens to all users on 13 chains, letting one wallet balance stand behind several positions at once.
Liquidity providers can keep assets in their own wallets, using one balance to back multiple positions without splitting capital across different pools.
A study commissioned by 1inch to Dune reveals that 85% of concentrated liquidity in DEXs remains unused at any given moment. Of the $1.84 billion tracked, approximately $542 million is completely out of range every week, representing losses of between $185 and $195 million annually in fees, according to 1inch.
1inch co-founder Anton Bukov says he was fired after pushing for management changes and is now building a new project called Second Tier.