Dune research: 85% of DeFi concentrated liquidity is not being fully utilized, resulting in $150 million in fees lost every year

PANews July 16, according to The Block, based on research commissioned by 1inch from on-chain analytics platform Dune, about 85% of centralized liquidity in decentralized exchanges has not been serving the purpose for which it was deposited, with an average of about $542 million fully outside its fee range every week. Dune said that liquidity providers with liquidity outside the fee range lose about $150 million in fees per year, of which more than one-third of idle capital has not been used for over 90 days.

The study reconstructed all liquidity positions in the top 200 most active liquidity pools on Uniswap v3, Uniswap v4, PancakeSwap v3, and Aerodrome Slipstream, and took 26 weekly snapshots for seven chains between January 6 and June 30. The research covers an average of about $1.84 billion in liquidity per week, with about $1.6 billion not being adequately utilized at any given moment.