PANews reported on November 20 that a research report by the Bank for International Settlements (BIS) showed that although decentralized exchanges (DEXs) such as Uniswap aim to eliminate intermediaries, liquidity providers (LPs) are still dominated by a small number of skilled participants, similar to professional intermediaries in traditional finance. These "professional" LPs account for 65-85% of liquidity and earn higher returns, with an average daily net income of 3 basis points more than ordinary LPs (about 11.65% annualized). In contrast, retail LPs account for 93% of the number, but only provide less than 35% of liquidity, with an average position size of only US$29,000, while the average position size of professional LPs is US$3.7 million.
In addition, Uniswap V3's "centralized liquidity" model has accelerated the dominance of professional participants, who almost completely control liquidity in high-liquidity pools with a trading volume of more than $10 million, while retail investors are more concentrated in low-liquidity pools with a daily trading volume of less than $100,000. This shows that despite the original intention of DEX to "democratize", the market still shows a significant trend of centralization.
