2026-01-06 02:56:25

Uniswap founder clears the AMM vs Order Book debate

Uniswap founder Hayden Adams shared an important take today about why AMMs are not losing to order books.

He explained that in low-liquidity and small pairs, AMMs actually work better. They give steady returns to small liquidity providers and slowly reduce the advantage of big professional market makers.

For high-volatility and long-tail tokens, AMMs are basically the only system that can scale. Instead of projects paying high fees to market makers, early supporters and teams can provide liquidity themselves and earn more that way.

When it comes to big, popular tokens, AMMs are still growing. Order books work well right now, but AMM technology is still early. With upgrades like Uniswap v4 hooks, more efficient and profitable pools are expected in the future.

His main point: AMMs have lower costs, are easier to manage, and allow liquidity to be bundled and used as collateral. Over time, this could make AMMs the stronger system overall.
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