Uniswap Founder Hayden Adams Fires Back: AMM Model Isn’t Just Sustainable—It’s the Future
Hayden Adams just dropped the mic on DeFi's biggest critics. The Uniswap founder launched a full-throated defense of the Automated Market Maker (AMM) model, calling out the tired arguments that it's somehow a temporary fad.
The Liquidity Revolution
Forget the old playbook. AMMs don't ask for permission—they rewrite the rules. They slash through traditional market-making gatekeepers, handing liquidity control directly to the crowd. It's a 24/7, code-is-law engine that bypasses the whole tired system of middlemen and centralized order books.
Sustainability or Superiority?
The debate isn't about whether AMMs can survive; it's about how everything else will catch up. The model's resilience isn't theoretical—it's baked into billions in locked value that refuses to budge, even when Wall Street sneezes. It turns every crypto holder into a potential market maker, a concept so disruptive it gives traditional finance guys night sweats—right between worrying about their bonus and their golf handicap.
Adams isn't just defending a protocol. He's championing a fundamental shift in how markets *function*. The message is clear: the AMM isn't a niche experiment. It's the backbone of a new financial system, and its critics are just yelling at the tide.
AMMs remain competitive under different market structures
According to Hayden Adams, AMMs remain competitive under different market structures. He stated that for low-volatility pairs such as stablecoins, AMMs offer steady yield to participants with cheaper capital, allowing them to outprice professional firms.
Hayden also stated that AMM wins in terms of high volatility long tail. “Other market structures don’t scale well enough. LPs are often the projects themselves or early supporters with the goal of creating liquidity, not maximally profitable delta-neutral market making. Way better than paying a market Maker in options,” he added.
In comparison to professional markets, Hayden Adams stated that AMM liquidity is more composable and can be used as collateral more easily. This approach, Adams argues, is more effective than paying market makers option-like fees. The listing of the UNI/USD1 pair on Binance has made it even more liquid.
Notably, Balancer, a major AMM, suffered a $120 million exploit due to a precision flaw in its code. Uniswap also saw a major positive market reaction in that same month. Thereafter, Adams proposed activating a “fee switch” to share protocol revenue with UNI token holders, resulting in a 35% increase in the token’s price.
As Uniswap v4 development continues, its promised “hooks” will be closely watched as a potential answer to the critical question of long-term LP profitability and the sustained health of decentralized liquidity. At the end, Hayden stated, “ Def agree on improving LP returns.”
Uniswap faces $100 million loss amid high valuation
Uniswap has generated nearly $600,000 in fees within approximately 10 days since implementing its fee structure on December 27. This translates to an annualized fee revenue of over $24 million. As reported by Cryptopolitan, the decentralized exchange has burned 96,000 UNI tokens, with an annualized burn rate of approximately 3.893 million UNI.
According to Dragonfly partner Omar Kanji, since Uniswap’s fee switch was turned on, its value has hit 240 times its annualized fees. The fully diluted value of the decentralized market is $540 million, with yearly fees of approximately $2.3 million.
The price has declined by 5.7% over the last 24 hours and 1% over the last week.
The key support level at $5.70 appears to be holding for now, but a breakdown below that level could invalidate the bullish case for the token, according to data.
Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.
