TLDR Tech / Crypto
Dune research finds 85% of concentrated DeFi liquidity is underutilized
A Dune Analytics study commissioned by 1inch found that 85% of concentrated liquidity across Uniswap v3/v4, PancakeSwap v3, and Aerodrome Slipstream operates below optimal efficiency, with about $1.6 billion of $1.84 billion in average weekly tracked liquidity sitting idle across 200 top-performing pools. LPs forgo about $150 million per year in fee income, led by Uniswap at roughly $116 million, derived from in-range capital earning approximately $0.35 per dollar deployed per year. Positions above $1 million account for 47% of idle capital (roughly $260 million), and individual wallet holders rather than bots or contracts control the majority of dormant positions across major chains. Uniswap v4 showing 30.5% out-of-range capital alongside 36.7% of all positions untouched for 90-plus days indicates that structural inefficiency in concentrated liquidity persists beyond protocol-level redesigns.
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