Did you know that 85% of stablecoin pools are ineffective?
This is liquidity fragmentation at its finest🧵
The stablecoin market seems liquid and diversified: dozens of pools for every major pair. But dig deeper, and you’ll see that most of them contribute almost nothing to price discovery, execution quality or market depth.
<> For USDC/USDT, there are 69 active pools, but 58 process less than 1% of the volume;
<> For USDC/DAI and USDT/DAI, about 90% of pools contribute <1% volume.
The data was taken from the last 30 days.
The Herfindahl-Hirschman Index (HHI) measures the concentration of market share across different entities (pools). It is calculated by squaring the market share (trading volume share) of each participant (pool), and then summing those squared values.
HHI highlights this inefficiency: large pools control most of the volume, while smaller ones have negligible impact.
Instead of creating more pools competing for marginal volume, Superposition aggregates liquidity at the wallet level, collapsing fragmented liquidity into a unified layer. This allows LPs to earn optimal returns by ensuring their money works efficiently in a market. No more worrying about optimizing capital across multiple exchanges.
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