Uniswap founder: AMM outperforms order books in both high and low volatility markets and popular token areas

Uniswap founder Hayden Adams posted on the X platform expressing his strong opposition to claims regarding the disadvantages of AMMs (Automated Market Makers). Hayden Adams pointed out that in low-volatility currency pairs, AMMs can provide stable returns for low capital cost investors, thereby weakening the competitiveness of professional market makers. In high-volatility long-tail markets, AMMs are the only scalable option, as project teams or early supporters act as liquidity providers (LPs), creating liquidity more effectively than paying option fees to market makers.

Regarding the high-volatility popular token market, 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 combinations and collateralization, AMMs will ultimately prevail in this field.