1inch: $12 billion in DeFi liquidity remains idle, with 95% of funds unused

Jinse Finance reported that a report released by 1inch shows that 83%-95% of liquidity in major decentralized finance (DeFi) pools such as Uniswap and Curve is idle, with billions of dollars in funds not generating fee income or any returns. This inefficiency particularly affects retail liquidity providers: 50% of retail users have suffered losses due to impermanent loss, with total net losses exceeding $60 million. 1inch proposes to address this issue through its Aqua protocol—which allows DeFi applications to share a unified liquidity pool, aiming to optimize liquidity utilization, reduce capital fragmentation, and increase returns for liquidity providers.