AMMs Ready to Make Waves in Global Finance

Hayden Adams, founder of Uniswap, believes that automated market makers (AMMs) could soon enter global finance. He points to recent activity on tokenized stock pools against SPY, which have processed $33 million in volume from over 11,000 traders in just 12 days.

The AMM model allows users to place two assets into a shared pool, with prices changing according to programmed rules and liquidity providers collecting trading fees. Adams argues that correlated tokenized-asset pools can reduce inventory risk and lower market-making costs, making them more attractive to capital.

Adams notes that the ability of AMMs to handle regulated assets is still limited by current U.S. regulations. The SEC has proposed rules for continuous trading and blockchain-based securities records, but their implementation date remains uncertain.