【Bank for International Settlements: The liquidity supply of DEXs similar to Uniswap is not decentralized】Golden Finance reported that on November 19, the Bank for International Settlements released a working paper that delves into DEX Uniswap v3. In this study, the Bank for International Settlements set out to investigate whether the liquidity supply of DEXs truly achieves the democratization of financial markets or is instead mimicking traditional markets dominated by a few large firms. The Bank for International Settlements found that, aside from technological implementation, the liquidity supply is not decentralized. Their findings indicate that the performance of retail liquidity providers is inferior to that of a few dominant players in the liquidity market. The report notes, "These participants lock up about 80% of the total value and focus on liquidity pools with the highest trading volume and lower volatility." The study found that retail LPs have a lower share of trading fees and relatively low returns on investment. Additionally, the Bank for International Settlements pointed out that retail providers "incurred losses on a risk-adjusted basis." Although the paper only focuses on Uniswap, the researchers believe that Uniswap v3 "is not special," and their findings may apply to other DEXs. They suggest that future research should examine the roles of retail and institutional participants in various DeFi applications (such as lending).
