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Crypto has massively decreased the time it takes to generate substantial revenue
AMMs that have been live for a few years (some months) are now generating nine figures
But how sustainable is this success? And will it translate to value for their governance tokens?
AMMs that have been live for a few years (some months) are now generating nine figures
But how sustainable is this success? And will it translate to value for their governance tokens?
The future success of AMMs is largely predicated on them serving two niches:
Incentivized liquidity provision
Tokens can easily bootstrap a market by allocating tokens to LPs which weâve seen succeed in increasing liquidity and trading volumes
Incentivized liquidity provisionTokens can easily bootstrap a market by allocating tokens to LPs which weâve seen succeed in increasing liquidity and trading volumes
Low slippage on price-stable assets (stablecoins, pegged assets) Compressed pricing curves such as @CurveFinance can actually provide a superior product compared to CLOBs
Provided AMMs continue to serve these markets then there will likely be billions in revenue generated
The bull case for AMM tokens then comes down to the ability for governance to justify a material gross margin (such as SushiSwap's ~15%)
The bull case for AMM tokens then comes down to the ability for governance to justify a material gross margin (such as SushiSwap's ~15%)
Which if AMM tokens can successfully extract...
Translates to substantial value accrual
https://messari.io/article/the-bull-case-for-automated-market-makers-tokens?utm_source=jpurd17&utm_medium=thread&utm_campaign=ammbull
Translates to substantial value accrual
https://messari.io/article/the-bull-case-for-automated-market-makers-tokens?utm_source=jpurd17&utm_medium=thread&utm_campaign=ammbull
