Analysis: About 86% of concentrated liquidity in DEXs is not effectively utilized, with Uniswap V3 having the highest share of long-term idle funds

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Mars Finance news, according to The Block, Dune commissioned by 1inch to research found that in decentralized exchanges such as Uniswap v3, Uniswap v4, PancakeSwap v3, and Aerodrome Slipstream, about 85% of concentrated liquidity is not effectively utilized. The study tracked the performance of nearly 200 active liquidity pools across 7 on-chain networks in 26 weekly snapshots. On average, about $1.84 billion in tracked liquidity per week was observed, of which about $1.6 billion was in an inefficient state. Specifically, on the Uniswap v3 platform, among liquidity that has moved out of the market-making price range, 44.5% had not been adjusted for more than 90 days, the highest proportion platform in the study; in contrast, Aerodrome had a proportion of about 20%, and 58% of idle funds had still been adjusted within the past 30 days. In addition, only about 35% of idle funds are positioned within 5% of the market price; about 43% deviate from the market price by more than 25%, and another 17% deviate by more than 100%. In terms of position size, positions larger than $1 million hold about 47% of idle funds, equivalent to about $260 million.
UNI-2.07%
1INCH-2.29%
CAKE-1.57%
AERO-5.95%
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