What positions can I create on Aqua?

1inch Aqua gives you several options to provide liquidity, depending on the assets you're trading and how actively you want to manage your position. In this article, we’ll explain what options you have.

1inch Aqua offers several position types designed for different trading scenarios. Here's some advice on creating Aqua positions for:

• passive vs active strategies
• stable vs volatile pairs
• short- vs long-term goals
• experienced LPs vs newcomers.

But before choosing, make sure you understand the risks of liquidity provision - see our guide on risk management for LPs.

Full range

Full range is the simplest way to provide liquidity.

Your liquidity is available across the entire possible price range, so the position never goes out of range. You don't need to predict where the market will move or adjust your range as prices change.

This makes full-range positions well suited for users who prefer a low-maintenance approach.

The trade-off is capital efficiency. Because your liquidity is spread across every possible price, less of it is concentrated around the current market price compared with narrower positions.

Best for:

• Users newer to liquidity provision
• Long-term liquidity providers
• Volatile trading pairs when you don't want to manage ranges

Concentrated liquidity

Concentrated liquidity lets you choose the price range where your liquidity is active.

Instead of covering the entire market, your capital is focused within a specific range. If trading happens there, more of your liquidity is available, potentially increasing fee generation.

The trade-off is that if the market moves outside your chosen range, your position stops earning swap fees until the price returns or you create a new position.

Aqua offers preset ranges for convenience, while advanced users can define a custom range that better matches their market view.

Also, with 1inch Aqua, it is easy to create single-sided positions: simply set either the minimum or maximum price equal to the current market price. The position will then start with one token only, gradually converting into the other token as trades are executed.

Best for:

• Experienced LPs
• Volatile assets such as ETH or BTC
• Users seeking higher capital efficiency

Pegged positions

Pegged positions are designed for assets that typically trade close to the same value.

Examples include:

• USDC and USDT
• ETH liquid staking tokens and ETH
• Other closely correlated assets

Instead of setting separate minimum and maximum prices, you choose a symmetric range around the current market price. Aqua then configures the position for assets expected to maintain a close relationship.

Because these assets usually experience relatively small price differences, pegged positions can provide highly efficient liquidity.

They are not intended for assets with large price swings. And pegged assets can still lose their peg: if that happens, a pegged position can end up holding mostly the weaker asset.

Best for:

• Stablecoin pairs
• Liquid staking tokens
• Other correlated assets

Choosing your range

When creating a position, Aqua automatically suggests range presets based on the type of assets you're providing.

For volatile pairs, the available presets are wider to accommodate larger price movements.

For correlated assets, the presets are much narrower because those assets are expected to remain close in value.

If you have a specific market view, you can also define your own custom range.

Fees are reinvested automatically

One feature applies to every Aqua position.

Any swap fees your position earns are automatically reinvested into your liquidity. There is nothing to claim or manually compound. Where a protocol fee applies, reinvested amounts are net of that fee.

Keep in mind

Once a position is created, its parameters cannot be edited.

If you later decide to change the range, fee settings or other configuration, you'll need to close the existing position and create a new one.

This keeps every deployed position immutable while making its behavior predictable on-chain.

Which position should you choose?

There isn't a single "best" position type.

• Choose Full range if you want the simplest, lowest-maintenance experience.
• Choose Concentrated liquidity if you're comfortable selecting a price range in exchange for greater capital efficiency.
• Choose Pegged when providing liquidity for assets that are designed to stay close in value.

Whichever position you create, Aqua lets you back it with the same wallet balance through shared liquidity while keeping your assets in your wallet until a qualifying swap is executed. As with any form of liquidity provision, all position types remain exposed to market risk, and fees are not guaranteed.

Explore Aqua and start creating liquidity positions at 1inch.com/aqua.

Disclaimer: This content is provided for informational purposes only. Nothing in this material constitutes financial, investment, legal, or tax advice, or a recommendation to enter into any transaction. Interacting with Aqua involves risk, including the possible loss of all funds involved.