## Why AMMs Remain Essential Despite Growing Criticism

The viability of automated market makers continues to divide the crypto community. Hayden Adams, founder of Uniswap, offers a new perspective by showing that this technology does not suffer from a fundamental sustainability problem, but rather from a misunderstanding of its optimal use cases.

### AMM and Stable Pairs: An Underestimated Efficiency

On low-volatility assets, AMMs deploy an unexpected strength. Thanks to a lightweight capital structure, these mechanisms generate returns comparable to traditional market makers while eliminating the high operational fees they impose. For participants seeking passive exposure with minimal friction, this is a significant advancement. Hayden Adams emphasizes that this performance directly contradicts the narrative that AMMs are inherently non-competitive.

### Long-Tail Assets: The True Playground for AMMs

The opposite situation of volatile pairs reveals the very essence of the AMM value proposition. Faced with almost total lack of scalable liquidity alternatives, Uniswap and its peers become the lifeline for emerging projects. Founding teams and early investors bootstrapping liquidity are not seeking an optimized delta-neutral market making. Their goal is more pragmatic: to ensure a minimal base for exchanges to take place.

### Rethinking the True Cost of Liquidity

Rather than compensating professional market makers with opaque fee structures—equivalent to paying an optional premium—AMMs offer a model where the cost is directly reflected in the spread. Adams defends this transparency as a structural advantage, especially for assets where traditional liquidity would simply be impossible.