Uniswap founder Hayden Adams argues that automated market makers could become the dominant market-making infrastructure for tokenized equities as traditional stocks get tokenized. Robinhood-issued tokenized stocks have generated 33 million dollars in trading volume on Uniswap over a 12-day window, with more than 11,000 traders participating. The performance is explained by correlated pairs, such as a single stock and a broad index ETF, which eliminate the impermanent loss risk that has been AMMs’ biggest structural weakness. Uniswap provides the liquidity infrastructure for Robinhood’s tokenized products built on its own blockchain.
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