Round 54% of liquidity in positions beneath $1,000 was out of vary, in contrast with 26% for positions above $1 million. But positions value greater than $1 million accounted for 47% of all idle capital, or roughly $260 million.
Whereas contract-managed positions stayed inside a extra constant vary, particular person wallets accounted for between 82% and 94% of the attributed idle capital on Uniswap v3, relying on the chain. That implies liquidity deposited instantly by customers and requiring handbook changes is extra prone to go unattended and fall out of vary.
Dune estimated that these out-of-range suppliers, which might be sitting idle, might be lacking roughly $150 million in charges every year, based mostly on a blended in-range price APR of about 35%.
Liquidity suppliers deposit token pairs that decentralized exchanges use to finish swaps. They earn a share of the charges paid for trades utilizing that liquidity pool whereas their positions stay within the vary they set.
Nonetheless, the analysis mentioned that the determine shouldn’t be assured recoverable revenue. Holding positions energetic can add transaction prices, execution danger and publicity to unfavorable worth actions.
1inch commissioned the analysis forward of the deliberate launch of Aqua, a brand new liquidity protocol. Dune mentioned it developed the methodology and reached its conclusions independently.