$12 Billion Loss in DeFi Pools: Liquidity Issue

According to a report published by 1inch, in major decentralized finance (DeFi) pools, such as platforms like Uniswap and Curve, between 83% and 95% of the liquidity is not in use. This situation means that billions of dollars are not earning any fees or providing any returns.

This inefficiency negatively impacts retail liquidity providers in particular. The report states that 50% of individuals in this group have lost money due to impermanent losses, with the net shortfall exceeding $60 million.

1inch proposes the Aqua protocol as a solution to this problem. This protocol aims to optimize liquidity usage by sharing a common capital pool among DeFi applications. This way, fragmentation will be reduced and returns for liquidity providers will increase.

DeFi, liquidity crisis, 1inch, Uniswap, Curve, Aqua protocol