Uniswap Founder: AMM Outperforms Order Books in Low Volatility Currency Pairs, High Volatility Long Tail Markets, and Mainstream Tokens

On January 6, Uniswap founder Hayden Adams posted on the X platform expressing his strong opposition to claims about the disadvantages of AMM (Automated Market Makers). He pointed out that in low volatility currency pairs, AMM can provide stable returns for low-cost investors, thereby weakening the competitiveness of professional market makers. In high volatility long tail markets, AMM is the only scalable option, with project teams or early supporters as liquidity providers (LPs), whose liquidity creation effects outperform the costs of paying options to market makers.

Regarding high volatility mainstream tokens, Hayden Adams stated that AMM is continuously growing; although order books are currently in optimal condition, AMM's development is still in its early stages. With the development of Uniswap v4's Hook, more profitable liquidity pools will be offered in the future. Hayden Adams believes that due to the advantages of low capital costs and liquidity being easier to combine and collateralize, AMM will ultimately prevail in this field. $ETH #加密ETF十月决战