TechFlow news, November 20 — According to Cointelegraph, the Bank for International Settlements (BIS) released a research report analyzing liquidity provision on the decentralized exchange (DEX) Uniswap v3.
The report指出 that despite being technically decentralized, the liquidity market is still dominated by a small number of large participants, making it difficult for retail liquidity providers to compete with institutions. These major players hold around 80% of the total value locked and focus on liquidity pools with high trading volumes and low volatility.
The study also found that retail LPs earn relatively low transaction fee returns and investment yields, which are typically negative on a risk-adjusted basis. BIS argues that this institutional dominance challenges the core理念 of decentralized finance systems underpinning DEXs.
