About 54% of liquidity in positions below $1,000 was out of range, compared to 26% for positions above $1 million. However, positions worth more than $1 million represented 47% of all idle capital, or approximately $260 million.
While contract-managed positions remained within a more consistent range, individual wallets accounted for between 82% and 94% of the attributed idle capital on Uniswap v3, according to the chain. That suggests that liquidity deposited directly by users and requiring manual adjustments is more likely to be left unattended and out of range.
Dune estimated that these out-of-range providers, which are inactive, could lose approximately $150 million in fees each year, based on a combined APR of in-range fees of approximately 35%.
Liquidity providers deposit pairs of tokens that decentralized exchanges use to complete trades. They get a share of the fees paid for trades that use that liquidity pool while their positions remain in the range they set.
However, the investigation says that the figure does not guarantee recoverable income. Holding active positions can add transaction costs, execution risk and exposure to unfavorable price movements.
1inch commissioned the research ahead of the planned launch of Aqua, a new liquidity protocol. Dune said it developed the methodology and reached its conclusions independently.
