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The Nexus
TECHNOLOGYApr 29 · 19:35 UTCR/DEFI/u/Kind_Trouble_3000

Why is 90% of LP capital sitting idle and what would a fix look like?

Liquidity providers (LPs) on Base face the issue of 90% of their capital being idle due to limited on-chain opportunities, forcing them to either split capital across chains for worse returns or miss opportunities. The article proposes a solution where the same deposit could back liquidity on multiple chains simultaneously without bridging or splitting, maintaining non-custodial control.

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