Uniswap Founder: AMMs Are Following the Path of Index Funds in Disrupting Wall Street Hayden Adams shared a long post comparing the current tokenization wave to the ridicule John Bogle faced in 1976 when he created index funds, dubbed 'Bogle’s Folly.' Fast forward to today, the SEC has approved tokenized stock trading on Nasdaq and NYSE, and DTCC launched related pilot programs in July. His key argument revolves around 'correlation pairing': AMMs don’t need to perform complex delta-neutral hedging like traditional market makers. By simply pairing highly correlated assets (e.g., ETH with ETH-related tokens, stablecoins with stablecoins), capital efficiency can significantly outperform traditional models. This also explains why Citadel Securities (which handles about 25% of U.S. equity trading volume and earned $12.2 billion in net income last year) relies heavily on capital barriers. On-chain mechanisms break down this layer of 'bundling.' He also cited examples like tokenized stocks paired with SPY on Robinhood Chain, and meme coins paired with Musk-themed stocks, reinforcing his conclusion: passive strategies might eventually outperform traditional market makers, just like index funds did.