Report Flags Underutilization of Nearly 90% of Concentrated Liquidity in DeFi
A new report from Dune has found that a large share of liquidity supplied by users to decentralized exchanges is failing to contribute to trade execution, leaving substantial amounts of capital inactive despite the introduction of mechanisms designed to improve efficiency. Concentrated liquidity was developed to make decentralized exchanges more capital efficient by allowing liquidity providers to allocate funds within selected price ranges where trading activity is expected to occur most frequently. Dune’s analysis, however, shows that the intended benefits are often not being realized. During the first six months of this year, an average of 29.4 percent of liquidity…





