Months ago I remember listening to a podcast and hearing one of the heads of an investment firm predict the future doom of automated market makers like Uniswap. The idea was that there would be an inevitable displacement from traditional market makers as they enter the crypto space and AMMs would lose out because they are not "capital efficient."
Seeing the events of this week unfold further cements my hypothesis that the disruption will happen, but in the exact opposite way.
I think the key error here is forgetting to consider the efficiency of human capital.