1mol

A liquidity layer for 1inch Aqua. Deposit an asset, receive vUSD, and hold a transferable ERC-4626 position in market making that would otherwise leave you with no receipt at all.

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What problem this solves

Aqua is a liquidity registry, not a vault. It records balances[maker][app][strategyHash][token] as an allowance, so the maker's tokens never leave their own account. That design removes two costs that traditional AMM liquidity providers pay — there is no way for a searcher to inject just-in-time liquidity and dilute an existing maker's fees, and quoting is gated to the resolvers a maker admits rather than open to any arbitrageur.

Those properties are valuable. Reaching them as an individual is not practical:

	Providing to Aqua directly	Through 1mol
Receipt for the position	none — the position is not tokenised	vUSD, a transferable ERC-4626 share
Staying in range	a shipped strategy is immutable; each adjustment is a dock-and-ship paid alone	one rebalance covers every depositor
Composability	capital is committed with nothing to pledge elsewhere	vUSD can be restaked, and later pledged
Multi-pool delegation	return rises sub-linearly, ruin probability rises faster	allocation caps bound each strategy's draw
Reward for risk taken	flat, whatever exposure is accepted	priced by tier, tenure and restaking

The last row is the one that matters most. Delegating a single balance across several strategies is what makes Aqua capital-efficient, and it is also what makes a lone provider's position fragile: a flat pro-rata reward schedule pays the same whether the depositor accepted one strategy or five. So most decline, and the liquidity the protocol depends on stays thin. 1mol prices that exposure explicitly.

Architecture

                  ┌─────────────── Layer 1: staking ────────────────┐
  USDC / USDT ──▶ │ StableVault ─┐                                  │
                  │              ├──▶ vUSD  (ERC-4626, share-       │
  WETH / WBTC ──▶ │ MajorVault ──┘          appreciating)           │
                  └────────────────────────┬─────────────────────────┘
                                           │
                       ┌───────────────────┴────────────────────┐
                       ▼                                        ▼
            ┌──────────────────────┐              ┌─────────────────────────┐
            │ AquaStrategyManager  │              │ Layer 2: Earn           │
            │ one aggregated maker │              │ vUSD ──▶ stvUSD         │
            │ allowlist + caps     │              │ raises loyalty curve    │
            └──────────┬───────────┘              └────────────┬────────────┘
                       │ ship / dock                           │
                       ▼                                       ▼
            ┌──────────────────────┐              ┌─────────────────────────┐
            │ 1inch Aqua registry  │              │ LoyaltyEngine           │
            │ 0x1111113ccf…6a90a   │              │ risk x tenure x restake │
            └──────────────────────┘              └─────────────────────────┘

Two tokens, both share-appreciating

vUSD and stvUSD follow the wstETH model: the holder's balance never changes, and each share redeems for progressively more of the underlying. Nothing rebases and nothing is claimed, so both tokens behave predictably as collateral elsewhere.

Token	Vault	Underlying	Minted by
vUSD	Layer 1	the deposited asset	staking into StableVault / MajorVault
stvUSD	Layer 2	vUSD	staking vUSD into the Earn campaign

Contracts

Contract	Responsibility
vUSD.sol	Layer 1 ERC-4626 vault; routes realised profit and absorbs losses
StableVault.sol	USDC/USDT gateway, normalises decimals
MajorVault.sol	WETH/WBTC gateway, converts at the configured price
EarnVault.sol	Layer 2 ERC-4626 over vUSD, mints stvUSD
AquaStrategyManager.sol	Ships and docks strategies as one maker, under allowlist and caps
LoyaltyEngine.sol	Prices opted-in risk: tier × tenure × restaking
SafetyReserve.sol	First-loss capital funded from realised profit
IAqua.sol	Aqua registry interface (declaration only)

Risk controls

Enforced in code, not described in a roadmap:

• Allowlist. A strategy app cannot receive capital until the owner admits it.
• Per-strategy caps. Each strategy carries a cap in basis points of managed assets; an allocation above it reverts.
• Global cap. Total deployment is bounded (default 90%), so a redemption buffer stays liquid regardless of per-strategy caps.
• Emergency dock. emergencyDockAll pulls every live strategy back in one call, callable by owner or vault so a keeper need not wait on governance.
• First-loss capital. 10% of realised profit is retained in SafetyReserve and 5% goes to treasury; the remaining 85% compounds into the share price. absorbLoss draws on the reserve first and reports any uncovered remainder rather than concealing it — the protocol bounds the drawdown it can fund and says so when it cannot.

Loyalty

Reward share is computed from risk accepted, not deposit size:

loyalty power = principal × Σ(tier weight) × tenure × restake

Component	Values
Tier weight	Stable 1.0x · Major 1.8x · Long-tail 3.5x
Tenure	1.2x past 30 days · 1.5x past 90 days; resets when opted-in risk rises
Restake	1.4x while the position is held as stvUSD

Two equal deposits therefore do not split rewards evenly: one accepting every tier takes a materially larger share than one taking the base pool alone. Tenure resetting on a risk increase prevents a long-tenure multiplier being accrued cheaply and then redirected into high-risk strategies.

Getting started

git clone https://github.com/codeForEatingEverything/1mol
cd 1mol

Contracts

cd contracts
npm install
npm run compile                                   # hardhat compile + typechain
npm test                                          # full suite, no network needed
npx hardhat test --grep "loyalty"                 # a single group

Against the real Aqua registry

Aqua is deployed to 17 mainnets and has no testnet, so its suite runs on a mainnet fork:

AQUA_FORK=1 npx hardhat test test/Aqua.fork.test.ts

This exercises the deployed registry at 0x1111113ccf1426a8e30e2bff5e005d929bf6a90a — not a mock. Set MAINNET_RPC_URL to use your own endpoint, and FORK_BLOCK to pin a block for cache reuse.

Local end-to-end

cd contracts
npx hardhat node &                                        # local chain
npx hardhat run scripts/deploy.ts --network localhost     # writes deployments.json + frontend/.env.local
npx hardhat run scripts/ui-paths.ts --network localhost   # replays every frontend call path
RECIPIENT=0xYourAddress npx hardhat run scripts/faucet.ts --network localhost

cd ../backend && npm install && npm run dev               # indexer on :3001
cd ../frontend && npm install && npm run dev              # UI on :3000

deploy.ts writes frontend/.env.local, so the UI needs no manual address wiring.

Testing

Suite	Coverage
Vaults.test.ts	ERC-4626 mechanics, both gateways, Layer 2 staking
LoyaltyEngine.test.ts	risk-weighted emission, tenure steps and resets, restake compounding
SafetyReserve.test.ts	profit split, loss absorption, uncovered reporting
AquaStrategyManager.test.ts	allowlist, caps, emergency dock, non-custodial approval
Aqua.fork.test.ts	the real Aqua registry on a mainnet fork
backend/test/api.test.ts	API contract, including honest degradation with no chain

The API suite asserts that endpoints report chainConnected: false with a reason when no deployment is reachable, so a regression to placeholder figures fails the build rather than shipping quietly.

Repository layout

contracts/   Hardhat — Solidity sources, deploy and verification scripts, tests
backend/     Express + viem — reads vault state, no write paths
frontend/    Next.js App Router — wagmi + viem + RainbowKit, single page

Roadmap

• Route major-asset deposits through 1inch Swap so conversion happens at market price rather than a configured one
• Live SwapVM strategy apps behind AquaStrategyManager
• Aave and Morpho allocations for the Earn layer
• Isolated vUSD lending market so the receipt can be pledged
• RWA and cross-venue strategies

Status

Hackathon MVP. Unaudited; the mainnet Aqua integration is exercised on a fork and has not been deployed. SafetyReserve.withdrawToTreasury is intentionally unguarded by a timelock at this stage and would need one before production.

Links

• Demo — https://1mol.xyz/demo
• Telegram — @Scout0221

License

MIT — see LICENSE. 1inch Aqua is separately licensed under LicenseRef-Degensoft-Aqua-Source-1.1; this repository declares its interface and calls its deployed contracts, and vendors none of its source.