Hayden Adams argues that automated market makers structurally outperform traditional market making across low‑vol, long‑tail, and eventually major volatile pairs due to cheaper capital and DeFi composability.

"3) high volatility top tokens: this is where it gets closer, and the true battleground but AMMs win again. On the one side you have people doing markouts and claiming LPs are unprofitable, on the other side you have constantly growing AMMs that have been working well for years. Orderbooks are the best they’ll ever be, but AMMs are only just getting started. Give us some time with v4 hook development and we’ll have significantly more profitable pools for these pairs. Eventually they win for same reason as low volatility pairs: professional market makers get edged out by people who can do the same thing with a lower cost of capital. AMM liquidity is also more composable, and can be used as collateral more easily which is another reason"

Top comment by @Spencer420

More coverage

• Optimal Automated Market Makers by Zhengge Zhou :: SSRN (papers.ssrn.com)
• am-AMM: An Auction-Managed Automated Market Maker - arXiv (arxiv.org)
• [PDF] am-AMM: An Auction-Managed Automated Market Maker⋆ (fc25.ifca.ai)
• Uniswap's Hayden Adams Rejects Claims AMMs Are Unsustainable (cryptopotato.com)
• Uniswap Founder Defends Sustainability of Automated Market Makers (binance.com)