Market participants express concerns about the impact of Maximum Extractable Value (MEV) on Automated Market Makers (AMMs), highlighting the potential for increased volatility. With block confirmation times extending up to an hour, price movements can be significant, as evidenced by a recent 1.31% shift in a 15-minute candle. The frequency of high-value transactions every 10 minutes could exacerbate market volatility, raising questions about the viability of on-chain AMMs without trusted stablecoins and the risk of slippage. Critics argue that while theoretically appealing, operating an on-chain AMM presents practical challenges.
Concerns Over MEV and Volatility in On-Chain AMMs
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