Uniswap Founder: AMMs Outperform Order Books on Low-Liquidity Pairs, High-Volatility Tail Markets, and Mainstream Tokens

By: theblockbeats.news|2026/01/06 02:46:07
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BlockBeats News, January 6th, Uniswap founder Hayden Adams wrote on the X platform, stating his strong opposition to the narrative of AMM (Automated Market Maker) disadvantage. He pointed out that in low-volatility currency pairs, AMM can provide stable returns for low-capital investors, thereby weakening the competitiveness of professional market makers. In high-volatility long-tail markets, AMM is the only scalable option, where project teams or early supporters act as liquidity providers (LPs), and their liquidity provision effect is superior to paying option fees to market makers.

Regarding high-volatility mainstream tokens, Hayden Adams stated that AMM is continuing to grow. Although the order book is currently in optimal state, the development of AMM is still in its early stages. Through the development of Hook in Uniswap v4, more profitable pools will be provided in the future. Hayden Adams believes that due to the advantages of low capital costs and liquidity being easier to bundle and collateralize, AMM will ultimately prevail in this field.

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