Uniswap founder sees tokenization as AMMs’ next big test

Uniswap pointed out that founder Hayden Adams believes that tokenization is going to change how liquidity is offered in cryptocurrency and traditional markets, while the automated market makers (AMMs) are still at the beginning of their journey, in an X post published on August 25.

This is significant considering the fact that AMMs conduct transactions in billions of dollars on a daily basis and could play an essential part in handling tokenized real-world assets that are being transferred to public blockchains.

AMMs make it possible for decentralized exchanges to provide pooled user deposits and set prices without involving an order book to match buyers to sellers. According to a working paper published by the Bank for International Settlements (BIS) in November 2024, AMM-based decentralized exchanges process over $10 billion worth of digital assets every single day.

If real-world assets (RWAs) shift on-chain, those markets will also need dependable liquidity. AMMs are one of the very few solutions capable of delivering liquidity at a large scale.

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