83%–95% of DeFi capital is idle, causing losses for traders; 1inch launches Aqua to improve efficiency.

A new 1inch report reveals that 83% to 95% of capital in major DeFi pools like Uniswap and Curve remains idle, totaling about $12 billion in unused assets. This inefficiency leads to poor returns, with half of retail liquidity providers losing money due to impermanent loss, resulting in net losses exceeding $60 million. Fragmented liquidity across millions of pools means only a tiny fraction of capital is actively trading. To combat this, 1inch launched the Aqua protocol, enabling shared liquidity pools and virtual trading positions, aiming to boost capital efficiency and lower barriers for developers and users.