What's going on?
Two separate reports from late July 2026 point to the same trend: both DeFi and derivatives are trying to solve the problem of fragmented liquidity by sharing it instead of locking it into isolated pools.
According to CoinDesk, Hyperliquid is leveraging the volume and depth of its order book (the record of bids and asks) by giving firms the ability to compose with the platform's shared liquidity rather than fragmenting it further [1]. In other words, third-party apps should build on existing liquidity rather than create their own isolated islands. This is the principle DeFi calls 'money LEGO', meaning stacking protocols like building blocks.
At the same time, according to The Block, 1inch has publicly launched Aqua, a shared liquidity layer that works from day one across 13 networks compatible with EVM (Ethereum Virtual Machine) [3][4].
What is 1inch Aqua and how does it differ from classic pools?
Aqua is an optional, non-custodial (meaning without entrusting assets to a third party) liquidity layer. According to the Incrypted portal, it lets liquidity providers use the same wallet balance for multiple positions without having to lock assets in pools [4]. That is the key difference compared to the traditional liquidity pool model, where funds are tied up in one specific pool.
Aqua was first launched for developers in November 2025 and has now moved into full public operation [4]. It is offered as an alternative to the pool model, with built-in risk control [4].
How much is going into incentives?
| Item | Detail |
|---|---|
| Incentive program | built on Merkl [4] |
| 1inch Foundation contribution | 10 million 1INCH [3][4] |
| 1inch DAO contribution | 500,000 USDC [4] |
| Number of networks at launch | 13 EVM networks [3][4] |
Why does this address fragmentation?
Context comes from Cointelegraph: DeFi projects that survived the collapse of Terra and FTX in 2022 are, according to the magazine, dying off in 2026. Analysts cited in the article argue this is not industry consolidation but the opposite [2].
Reading these three reports together, a common thread emerges: liquidity scattered across many protocols, networks, and pools is a weakness. Both Hyperliquid and 1inch are responding by offering shared liquidity that others can plug into. Charliedesk stresses, however, that the sources do not directly document a cause-and-effect link between projects dying off and the rise of shared liquidity. It is a parallel trend, not proven causality.
What don't we know yet?
The sources do not give specific figures on how many firms have already plugged into Hyperliquid's shared liquidity, nor how much volume has flowed through Aqua since its public launch. It is also not clear from these sources exactly how Aqua's 'risk control' works on a technical level. These details will need to be filled in as they become available.
What to watch out for with this type of product?
This is not investment advice. With shared liquidity layers, it is generally worth watching whether incentives (in this case 10 million 1INCH and 500,000 USDC [4]) generate lasting liquidity, or only temporary liquidity that drains away once the program ends. It is also worth paying attention to how the shared model behaves under market stress, that is, whether deeper but shared liquidity holds up better than fragmented liquidity, or conversely transmits risks across the system. Charliedesk will return to the results once hard data is available.