Deep Dive
1. Aqua Protocol Developer Release (17 November 2025)
Overview: This is a foundational update that introduces a new liquidity protocol. It lets developers create applications where a user's funds can be used in multiple DeFi strategies at once without ever leaving their self-custody wallet.
Aqua represents a shift from locking assets in smart contracts to using "virtual" trading positions. Its SDK and libraries are now available on GitHub, with bounties up to $100,000 for contributions. The public front end is slated for Q1 2026.
What this means: This is bullish for 1INCH because it tackles a core DeFi problem of fragmented, idle capital. For users, it could mean deeper liquidity for trades, better yields from their assets, and a simpler, safer experience where they never lose custody of their funds.
(Source)
2. Pathfinder Algorithm Upgrade (10 June 2025)
Overview: This update enhanced 1inch's core price discovery and routing algorithm, named Pathfinder. The improvements are designed to find users swap rates that are up to 6.5% better while also optimizing for gas efficiency.
The upgrade focuses on maximizing value and minimizing transaction costs for every trade executed through the 1inch aggregator.
What this means: This is bullish for 1INCH because a more efficient core engine improves its competitive edge. For users, it directly translates to getting more tokens for their money and paying less in network fees, making the platform more attractive for frequent trading.
(Source)
3. Solana Network Integration (30 June 2025)
Overview: This update added native support for the Solana network to the 1inch Wallet. It allows users to manage Solana-based tokens, track balances, and execute swaps directly within the app.
The integration expands 1inch's cross-chain capabilities, connecting its aggregation and routing infrastructure to Solana's high-speed, low-cost ecosystem.
What this means: This is bullish for 1INCH because it significantly broadens the protocol's addressable market and utility. For users, it provides a unified interface for managing assets and swapping across both EVM and Solana chains, simplifying the multi-chain experience.
(Source)
4. Bug Bounty Program Expansion (23 June 2025)
Overview: Following a $5 million exploit in March 2025, 1inch proactively expanded its security bug bounty program. The maximum reward for discovering critical vulnerabilities was increased to $500,000.
This move incentivizes white-hat hackers and security researchers to scrutinize the protocol's code, aiming to fortify its defenses before malicious actors can find weaknesses.
What this means: This is neutral-to-bullish for 1INCH as it directly invests in protocol safety rather than adding new features. For users, it enhances the security and reliability of the platform, reducing the risk of fund loss and building greater trust in the ecosystem.
(Source)
Conclusion
1inch's development trajectory is clearly oriented toward solving DeFi's fundamental issues: capital inefficiency, high costs, fragmented liquidity, and security risks. From the foundational Aqua protocol to granular routing and security improvements, these updates aim to create a more efficient, accessible, and secure aggregation layer. Will Aqua's novel model of shared, self-custodied liquidity become the new standard for DeFi capital efficiency?