A study by BIS in November 2024 found that a few major players dominate Uniswap V3's liquidity pool, raising doubts about DeFi's decentralization. The research, led by Matteo Aquilina, Sean Foley, Leonardo Gambacorta, and William Krekel, analyzed the top 250 LPs on Uniswap V3, revealing that 96% of trading volume is controlled by these pools. The study also showed that sophisticated traders hold 80% of the total value locked in these pools, disadvantaging retail investors. However, Gordon Liao from Circle disagreed with the study, stating that the inequality is not significant compared to traditional exchanges. Liao suggested improvements in liquidity management for retail traders. The study underscores the centralization issue in DeFi despite its decentralized structure, emphasizing the need for better liquidity provision and market access in the future. Read more AI-generated news on: https://app.chaingpt.org/news