DeFi Centralized Liquidity Underutilization Reaches 85% With $150M Annual Fee Losses
2026-07-16 20:57

Woofun AI data shows that approximately 85% of centralized liquidity in decentralized exchanges remains underutilized, resulting in an estimated $150 million in annual fee losses for providers. The study analyzed 26 weekly snapshots from January 6 to June 30 across Uniswap v3, Uniswap v4, PancakeSwap v3, and Aerodrome Slipstream, covering an average of $1.84 billion in weekly liquidity. Of this total, roughly $1.6 billion was inactive, with $542 million falling entirely outside the fee range; over one-third of this amount remained unchanged for more than 90 days.

Uniswap accounts for approximately $116 million of the lost fees, followed by PancakeSwap at $25 million and Aerodrome between $6 million and $12 million. Smaller positions exhibit higher idle rates, with those under $1,000 reaching 53%, while positions over $1 million have a 26% idle rate but constitute 47% of total idle funds. Sergej Kunz, co-founder of 1inch, attributed these losses to structural inefficiencies and announced plans to launch a shared liquidity product named Aqua.

Disclaimer: Views are the author's own and do not represent the platform. Do not reproduce without permission. Content is for reference only, not investment advice. Trade at your own risk.
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Sergej Kunz
Dune
1inch
Uniswap v3
Uniswap v4
PancakeSwap v3
Aerodrome Slipstream
Aqua
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