Automated Market Makers Are Dead By Cointelegraph

Billions of dollars poured into decentralized exchange protocols based on the automated market maker (AMM), which initiates network effects by inducing liquidity with project tokens, thus creating an autonomous ecosystem of traders and yield producers.

This mechanism allowed decentralized exchanges (DEX) to compete for the first time with centralized counterparts, such as Coinbase, which can afford to use cash from their balance sheets to pay for user acquisition (for example, via registration and referral bonuses). As a result, AMMs have been hailed as the cornerstone of decentralized finance (DeFi), spawning multiple permutations and triggering the trend towards yield farming that has helped attract billions of US dollars into smart contracts.

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