The True Value of AMM: Why the Order Book Model Is Not Omnipotent

ZkSnarker · 2026-01-06T02:32:14+00:00

A certain DEX founder recently rebutted criticisms of AMM, emphasizing its advantages in stable trading pairs and long-tail tokens, believing that AMM can provide better liquidity solutions. With the development of new features, it will have greater profit potential in the future. He thinks this debate reflects a dialogue between new and old trading models.

ZkSnarker

2026-01-06 02:32:14

Abstract generation in progress

【Blockchain Rhythm】A certain DEX founder recently posted on social media, strongly rebutting recent criticisms of AMM. His core point is clear: AMM is not a joke of the industry, but each has its strengths in different market environments.

In the field of stable trading pairs, the advantages of AMM are actually quite prominent. For small and medium-sized investors, this model can provide stable earning opportunities, which directly threatens the profit margins of traditional market makers. And in the case of long-tail tokens, the situation is even more interesting—due to sparse trading volume and high volatility, AMM has become the only scalable solution to liquidity issues. Project teams and early supporters acting as liquidity providers are much more cost-effective than paying options fees to market makers.

When it comes to mainstream trading pairs, the founder stated that the AMM ecosystem is still rapidly expanding. Although currently order book models seem to perform best in this area, he emphasized that AMM is just getting started. With the continuous development of new-generation protocols’ Hook functions, future liquidity pools will become increasingly profitable. Coupled with AMM’s inherent low capital costs and the ease of combining liquidity collateralization, he firmly believes that ultimately, this track will belong to AMM.

The essence of this debate is actually a dialogue between new and old trading models.

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BasementAlchemist

· 01-09 01:35

Basically, the main reason AMMs get hacked is because people can't make money. The order book system is friendly to big players, but ordinary users can't really participate.

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NotFinancialAdvice

· 01-08 21:42

Long-tail tokens have no other way out; AMM is the last straw. Don't be fooled by the hype around order books; when it really counts, it's still the pools that come to the rescue.

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AirdropHunter

· 01-07 23:07

Honestly, AMM is the most unfairly criticized thing. It truly excels in stablecoins and long-tail tokens. It's only the market makers panicking and shifting blame, haha. Order books are not a silver bullet either. Why must it be this or that? AMM's way of handling liquidity is really impressive. It's definitely a savior for long-tail tokens. This guy is quite right. The ecosystem is still developing, no need to jump to conclusions. Stablecoins definitely offer a better user experience than order books, and small to medium retail investors can also benefit from the dividends. Let's wait and see how the mainstream approaches it. I feel there will be surprises.

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RugResistant

· 01-06 03:01

Honestly, long-tail tokens AMM really has some substance. LP fees are much cheaper than the traditional market maker model. Order books are not a silver bullet, you're right. Starting to hype up order books again, okay, keep pushing. AMM is indeed underestimated in stablecoin pairs, small and medium investors benefit the most. Long-tail liquidity issues, AMM is truly the only solution; everything else is nonsense. Market makers are panicking, this is the real reason they are slandering AMM. Wait, mainstream tokens against AMM are still weak, this must be acknowledged. Not just AMM, the entire DEX ecosystem is iterating. If you claim it's absolute, you'll lose.

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ZenChainWalker

· 01-06 02:59

Speaking of which, the liquidity of long-tail tokens is indeed the forte of AMM; order books simply can't handle it. --- Are AMMs really no match for traditional market makers when it comes to stablecoins? Wake up, their LPs have already made a fortune. --- I always want to laugh at these debates; actual users don't care what model you use, as long as it makes money. --- Without AMM, long-tail tokens would really be at a standstill, gotta admit that. --- Another argument of "each has its strengths in different scenarios"... sounds reasonable but not very innovative. --- Order books have been hyped for so long, but in the end, only mainstream coins really benefit from them. --- The most popular among small and medium funds is the AMM setup; low barriers to entry and liquidity—what else can you ask for? --- In the realm of long-tail tokens, AMM is the only option; there's nothing to argue about. --- This is said tactfully, but actually it just means order books can't handle certain scenarios either. --- LPs earn fee spreads versus market makers paying option premiums; you don't need to do the math to know which is more profitable.

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OnchainUndercover

· 01-06 02:53

Long-tail tokens are fundamentally dependent on AMM; the order book is there, but no one really uses it...

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ZeroRushCaptain

· 01-06 02:43

Haha, coming back to whitewash AMM? I cut my LP position in Uniswap in half last year, and hearing this kind of rhetoric is honestly a bit frustrating.

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PuzzledScholar

· 01-06 02:41

Speaking of long-tail tokens, AMM is truly outstanding. Without it, there would have been a liquidity desert long ago. --- Is it more profitable or not to earn yields stably? Anyway, it's much more aggressive than traditional market makers haha. --- Order book models aren't that absolute either. Different scenarios require different tools. Do we really need to argue over such a simple principle? --- After being hacked for so long, finally someone is telling the truth about AMM. It seems that ecosystem expansion is still on the way. --- Without AMM, the state of long-tail tokens now is hard to imagine... liquidity has completely died out. --- It feels like another one of those all-or-nothing debates, which is really unnecessary. Everyone has their own way of doing things. --- Market makers are crying in the bathroom, while small retail investors have directly shattered their livelihoods through AMM.

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