Uniswap founder highlights AMMs’ potential with tokenized stocks

Hayden Adams has a theory, and the early numbers are starting to back it up. The Uniswap founder argued this week that automated market makers are not just a crypto-native curiosity but could become the dominant market-making infrastructure for equities as tokenization brings traditional stocks on-chain. The argument is cleaner than it sounds. When a tokenized stock trades against a correlated instrument like a tokenized SPY ETF, the price relationship between the two assets is already tight and predictable. That predictability is exactly what AMMs were designed to exploit. Why correlated pairs change the AMM calculus Traditional market makers carry inventory risk. They hold assets that can move against them before a trade is completed, and they price that risk into their spreads. AMMs sidestep this entirely for liquidity providers, because the math of the pool handles pricing automatically. The catch with early AMMs was impermanent loss: when two assets in a pool diverge significantly in price, liquidity providers end up worse off than if they had simply held the assets. Correlated pairs, like a single stock and a broad index ETF, tend not to diverge wildly. That structural featur...