According to @intotheblock, Automated Market Makers (AMMs) face a significant risk from the dominance of whale investors in liquidity pools. If a large depositor decides to withdraw their funds, it can drastically reduce the available liquidity, leading to a significant price impact on trades. This potential volatility can affect traders who rely on AMMs for their transactions.

According to @intotheblock, Automated Market Makers (AMMs) have significantly transformed the DeFi landscape by enabling users to earn yields through liquidity provision. While the concept is straightforward for most users, institutional investors must account for capacity constraints. The provided chart illustrates the relationship between these factors.