Deep Dive
1. Aqua Shared Liquidity Protocol (November 2025)
Overview: This is a foundational update that changes how liquidity works in DeFi. Instead of locking funds into a single smart contract for one purpose, Aqua allows the same assets in a user's wallet to be used by multiple automated strategies simultaneously.
The protocol introduces a shared liquidity layer where each wallet can act as its own self-custodial market maker. Strategies—like providing liquidity for swaps or earning yield—can atomically pull and return funds based on custom rules, all tracked by Aqua's accounting system. This aims to solve capital fragmentation, potentially multiplying the effective liquidity available across the ecosystem. The public front end is scheduled for Q1 2026, but the SDK and documentation are already available on GitHub.
What this means: This is bullish for 1INCH because it could dramatically increase capital efficiency for users, making DeFi more powerful and accessible. It positions 1inch as an innovator tackling a core industry problem, which may attract more developers and users to its ecosystem.
(The Block)
2. Pathfinder Algorithm Upgrade (June 2025)
Overview: This update enhanced 1inch's core price discovery and routing algorithm, named Pathfinder. The refinements are designed to scan more potential trade routes across integrated decentralized exchanges to secure users up to 6.5% better swap rates.
The improvements also focus on gas efficiency, helping to reduce the network cost for executing these optimized trades. This work on the fundamental routing engine ensures users get the best possible execution for their swaps.
What this means: This is bullish for 1INCH because it directly improves the user experience by delivering better value and lower costs on every swap. A more efficient aggregator strengthens 1inch's competitive edge as the leading DEX aggregator.
(Phemex)
3. Solana Cross-Chain Integration (August 2025)
Overview: This major expansion added Solana compatibility to 1inch's cross-chain swap infrastructure. It allows users to swap assets between Solana and over a dozen EVM chains (like Ethereum and BNB Chain) directly within the 1inch interface, using its intent-based Fusion+ mode.
The integration aggregates liquidity from Solana decentralized exchanges, giving users access to optimal rates. Critically, it removes the need for third-party bridges, aiming to provide a safer and smoother cross-chain experience by keeping swaps atomic and self-custodial.
What this means: This is bullish for 1INCH because it significantly broadens the protocol's reach and utility, tapping into Solana's high-speed ecosystem. It makes 1inch a more comprehensive hub for multi-chain DeFi, appealing to a wider user base.
(The Defiant)
Conclusion
1inch's development trajectory is sharply focused on solving DeFi's biggest hurdles: fragmented liquidity, inefficient routing, and isolated blockchain ecosystems. The combination of Aqua's innovative capital model, a smarter Pathfinder, and expanded cross-chain reach shows a clear push toward a more seamless, efficient, and secure multi-chain future. Will Aqua's shared liquidity model become the new standard for capital efficiency in DeFi?