When it comes to AMM sustainability concerns, there's been plenty of debate around whether automated market makers truly serve long-term liquidity providers. One of the pushback angles: volatility fees create real risks for LPs, especially in choppy markets.

But defenders point out the flip side—AMMs actually shine in low-volatility trading pairs, where price swings are minimal and returns stay more predictable. The real game-changer is what's coming next: v4 hooks, which fundamentally reshape how LP earnings work by allowing customized fee structures and incentive mechanisms tailored to different market conditions.

Context matters here. Recent security incidents like the Balancer exploit reminded everyone that DEX risks go beyond mechanics. Yet the market kept moving—$UNI token surged roughly 35% in this period, suggesting investors still see solid fundamentals beneath the noise.

The takeaway: it's not about whether AMMs work, but how they evolve to let LPs actually profit in varying conditions.