Uniswap’s Model Is a Science Project That Could Kill DeFi

In traditional finance, when one deposits money into a savings account, one can expect a reliable ROI from providing liquidity to the institution. But banks carry an implicit trust, whether through consumer protections or centuries of experience in managing assets and navigating volatile markets. DeFi platforms don’t have that same degree of investor confidence. Most DEXs, simply put, don’t have the experience to capture value from their liquidity successfully.

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