Jinse Finance reported that a 1inch report showed that 83% - 95% of the liquidity in major decentralized finance pools such as Uniswap and Curve is idle, with tens of billions of dollars generating no revenue from fees or any returns.
The impact of this inefficiency on individual liquidity providers is most severe: 50% of individuals suffer losses due to impermanent loss, with total net losses exceeding $60 million. 1inch proposed to solve this problem through its Aqua protocol—which allows decentralized finance applications to share a unified pool of funds, aiming to improve liquidity utilization, reduce capital fragmentation, and increase returns for liquidity providers.
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Jinse Finance reported that a 1inch report showed that 83% - 95% of the liquidity in major decentralized finance pools such as Uniswap and Curve is idle, with tens of billions of dollars generating no revenue from fees or any returns.
The impact of this inefficiency on individual liquidity providers is most severe: 50% of individuals suffer losses due to impermanent loss, with total net losses exceeding $60 million.
1inch proposed to solve this problem through its Aqua protocol—which allows decentralized finance applications to share a unified pool of funds, aiming to improve liquidity utilization, reduce capital fragmentation, and increase returns for liquidity providers.