1inch: $12 billion in liquidity is idle in the Decentralized Finance sector, with 95% of funds not being utilized.

According to a report released by 1inch, 83% - 95% of the liquidity in mainstream Decentralized Finance (DeFi) liquidity pools such as Uniswap and Curve is idle, with billions of dollars in funds not generating any fee income or returns. This inefficiency issue has a particularly severe impact on retail liquidity providers: 50% of retail investors incur losses due to impermanent loss, with total net losses exceeding 60 million dollars. 1inch proposed to solve this problem through its Aqua protocol — this protocol allows DeFi applications to share a unified liquidity pool, aiming to optimize liquidity utilization, reduce capital fragmentation, and simultaneously enhance returns for liquidity providers.