Uniswap Founder: AMM Outperforms Order Book in High and Low Volatility Markets and Popular Tokens

Odaily Planet Daily News: Uniswap founder Hayden Adams posted on X platform expressing strong opposition to claims about the disadvantages of AMM (Automated Market Makers). Hayden Adams pointed out that in low-volatility currency pairs, AMMs can provide stable returns for low-cost investors, thereby weakening the competitiveness of professional market makers. In high-volatility long-tail markets, AMMs are the only scalable option, with project teams or early supporters acting as liquidity providers (LPs), whose liquidity creation outperforms paying option fees to market makers. Regarding the high-volatility hot token markets, Hayden Adams stated that AMMs are continuously growing. Although order books are currently in optimal condition, the development of AMMs is still in its early stages. Through the development of hooks in Uniswap v4, more profitable liquidity pools will be offered in the future. Hayden Adams believes that, due to the advantages of low capital costs and easier liquidity composition and collateralization, AMMs will ultimately prevail in this field.