1inch DAO Aqua Revenue Stream Incubator — Build a Funded, Revenue-Sharing Strategy on Aqua

General
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1inch DAO Aqua Revenue Stream Incubator — Build a Funded, Revenue-Sharing Strategy on Aqua

TL;DR

  • The 1inch DAO funds builders to ship novel Aqua strategies and swapVM instructions.
  • Up to $50,000 per team, milestone-based, plus revenue share to the DAO from the first dollar.
  • $436,000 total pool from the DAO treasury; we expect to fund 8–10 teams.
  • Reviewed by StableLab, DAOPlomats, and Arana Digital (2-of-3 approval).
  • Make sure to Apply here using this link
  • Questions? Reply to this thread

What this is

Aqua is 1inch’s shared-liquidity layer: LPs keep their funds in their own wallets (non-custodial) while multiple strategies quote against the same capital, with balances tracked virtually instead of locked in pools. swapVM is the execution layer, and strategies built on it are picked up natively by 1inch aggregator routing.

The incubator pays teams to build the strategies and instructions that run on top. If you shipped a proof-of-concept on Aqua or swapVM at a hackathon, this is how you take it from demo to a live, revenue-generating strategy in the 1inch ecosystem, with funding and DAO support behind you.

What we fund

Two categories (or a combination of both):

  • Aqua Strategies — novel strategies that operate within the Aqua shared-liquidity layer.
  • swapVM Instructions — new instructions for the Swap VM, auto-routed by the 1inch aggregator.

In scope — what we’re actively looking for

  • Dynamic-fee AMMs with genuinely new fee logic
  • Inventory-based or oracle-based pricing / market-making innovations
  • Cross-chain or multi-asset strategies using Aqua / swapVM
  • Strategies for underserved asset classes (RWA, LST/LRT, yield-bearing assets)
  • New swapVM instructions that add functionality to the ecosystem
  • Novel approaches that don’t fit any box above

Out of scope

  • Core-team AMMs already built: constant product (x·y=k), concentrated liquidity, stableswap
  • swapVM instructions already deployed (e.g. flat/dynamic fees, existing curve instructions, time-decaying virtual-reserve MEV protection)
  • AMM formulas or mechanisms licensed by third parties (without permission)
  • Anything not related to on-chain trading / liquidity

Novelty is the #1 screen. Before you apply, check your idea against the published list of existing strategies and instructions so you don’t duplicate work already in progress.

Curves

  • Constant product AMM (x * y = k)
  • Concentrated liquidity with fee reinvestment via sqrt; optimized for 2 tokens
  • Square-root linear curve for pegged assets (stablecoins, wrapped tokens). Formula: √(x/X₀) + √(y/Y₀) + A(x/X₀ + y/Y₀) = 1 + A
  • Time-decaying virtual reserve offset for MEV protection. Penalizes immediate reverse swaps.

Fees

  • Flat percentage fee on input amount
  • Flat fee on input, transferred to protocol address
  • Flat fee on input, transferred via Aqua’s pull()
  • Fee rate queried from external contract via staticcall
  • Dynamic fee transferred via Aqua’s pull()

Funding & revenue

Grants are milestone-based. You only unlock the next tranche when the previous milestone is reviewed and approved.

Milestone % of grant Example ($50k) Deliverable
1. Idea Verification 5% $2,500 Detailed spec, scope confirmation, feasibility
2. Proof of Concept 10% $5,000 Working prototype on testnet
3. Working Implementation 35% $17,500 Functional strategy on testnet, with tests
4. 1inch dApp Integration 50% $25,000 Live on mainnet, integrated into 1inch
  • Revenue sharing to the DAO begins from the first dollar. You propose the percentage; the committee reviews it.
  • A buyout option is available after 3 years at fair market value (this applies to the DAO’s revenue-share portion; Aqua Source License terms still apply independently).

Who should apply

  • Teams or solo builders with real DeFi / smart-contract experience.
  • A working understanding of the Aqua shared-liquidity model and/or swapVM.
  • Willing to complete KYC/KYB and sign a revenue-sharing agreement.
  • Hackathon teams especially welcome — if you already have a PoC, you’re ahead of the curve.

How to apply

  1. Submit your application via the Notion form: [NOTION FORM LINK] — strategy category, scope check, team info, your Aqua/swapVM approach, milestone plan, and proposed revenue share.
  2. Screening — StableLab checks completeness, eligibility, and scope.
  3. Evaluation — three delegate reviewers assess and vote (2-of-3 to advance).
  4. KYC/KYB — approved teams complete verification.
  5. Legal — sign the revenue-sharing agreement.
  6. Funding — milestone-based, starting from Milestone 1.

Applications are reviewed on a rolling basis, so there’s no deadline to race, but the pool is finite, so earlier is better.

Build resources

Questions

Reply in this thread, or reach the program steward directly @Kene_Anode. We will keep this post updated as the program evolves.

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