New research reveals massive inefficiency in DeFi liquidity management
A six-month study by 1inch and Dune Analytics tracking $1.84B in DEX liquidity across seven chains uncovered a troubling reality:
- 85% of liquidity sits underutilized at any given time
- $542M earns absolutely nothing for providers
- $150M in annual fees are being left on the table
The findings highlight a fundamental problem: DeFi reached its current scale with most capital not fully deployed. As institutional money enters the space, this billion-dollar inefficiency threatens to become a trillion-dollar leak.
The research raises a critical question for the industry: how can liquidity providers optimize their positions to capture the fees they're currently missing?
Liquidity providers, you're missing out on roughly $150 million a year. New research from 1inch and @Dune tracked $1.84B in DEX liquidity across seven chains for six months. At any given time, 85% of it sits underutilized, and about $542M earns nothing at all. DeFi grew this
How much DeFi liquidity is actually active in the market? We worked with @dune to uncover the reality. This study follows $1.84B in pooled capital, over 6 months, across 7 chains. The findings will shock you. The sector needs a new approach.
1/ Across H1 2026, an average of 85% of concentrated-liquidity capital was underutilized and 29.5% sat outside the active price range. That works out to roughly $542M idle in a typical week. New onchain research from Dune, produced for @1inch.
$1.6bn in DeFi capital is underutilized. Out-of-range positions miss out on $150mn in fees every year. Check out @TheBlockCo on our research with @Dune.
EXCLUSIVE: Dune research finds 85% of concentrated DeFi liquidity is underutilized, with $150M in annual fees foregone theblock.co/post/408591/du…
1inch Sponsors ETHGlobal Lisbon 2026 Hackathon with Major Prize Pool

**1inch backs ETHGlobal Lisbon 2026**, a 36-hour hackathon taking place July 24-26 at Pavilhão Carlos Lopes. **Key Details:** - Over $100,000 in prizes available - Partner sponsors include The Graph, World, Hedera, 0G, Uniswap Foundation, Sui, and ENS - Event follows Pragma Lisbon summit on July 25 The hackathon offers builders a focused environment to create projects alongside support from leading web3 protocols and infrastructure providers. 1inch's sponsorship continues its support of developer communities and hackathon events across the ecosystem.
🏆 Aqua App Bounty: $5,000 Prize Pool for DeFi Builders
A new bounty program is offering **$5,000 in prizes** for developers building applications on Aqua: **Prize Distribution:** - 🥇 First place: $2,500 - 🥈 Second place: $1,500 - 🥉 Third place: $1,000 **Bonus Opportunities:** Teams can earn additional points by building with SwapVM and customizing its opcodes for unique DeFi positions. This follows a successful ETHGlobal event in Buenos Aires where the Aqua track distributed $17,000 across multiple winning projects, including outcome markets, privacy vaults, and flash loan implementations. [Learn more about building on Aqua](https://aqua.xyz)
🔄 1inch Co-founder Anton Bukov Departs After Seven Months
**Anton Bukov has officially left the 1inch project**, having ceased active involvement since December 2025. The departure was confirmed on July 16, 2026. **Key points:** - All 1inch protocols, infrastructure, and core systems continue operating normally - Co-founder Sergej Kunz and the executive leadership team remain committed to the project - The network's strategy and roadmap are unchanged - 1inch expressed gratitude for Bukov's contributions to the ecosystem The announcement emphasizes business continuity, with no disruption to the 1inch Network or its associated organizations.
Study Reveals DeFi Liquidity Reality Across Seven Chains

A comprehensive study tracking **$1.84 billion in pooled capital** over six months across seven blockchain networks has uncovered surprising findings about active DeFi liquidity. The research, conducted in collaboration with Dune Analytics, examined how much decentralized finance liquidity is genuinely active in the market. The findings suggest the sector requires a fundamental shift in approach. **Key Points:** - Study period: 6 months of data analysis - Capital tracked: $1.84B in pooled funds - Coverage: 7 different blockchain networks - Conclusion: Current DeFi liquidity metrics may not reflect actual market activity The research indicates a gap between reported liquidity figures and capital that's actively participating in DeFi protocols. This raises questions about how the industry measures and reports liquidity metrics. The study's authors suggest these findings point to the need for new frameworks in understanding and managing DeFi liquidity across multiple chains.