Uniswap founder: AMMs outperform order books in both high and low volatility markets, as well as in popular token sectors

According to Odaily, Uniswap founder Hayden Adams expressed on X that he strongly opposes claims about the disadvantages of AMMs (Automated Market Makers). Hayden Adams pointed out that in low-volatility currency pairs, AMMs can provide stable returns for investors with low capital costs, thereby weakening the competitiveness of professional market makers. In highly volatile long-tail markets, AMMs are the only scalable option, and when project teams or early supporters act as liquidity providers (LPs), their ability to create liquidity is superior to paying option fees to market makers.

Regarding highly volatile popular token markets, Hayden Adams stated that AMMs are continuing to grow. Although order books are currently in their optimal state, the development of AMMs is still in its early stages. Through the development of Hooks in Uniswap v4, more profitable liquidity pools will be provided in the future. Hayden Adams believes that due to the advantages of low capital costs and the easier composability and collateralization of liquidity, AMMs will ultimately prevail in this field.