Introduction

Autonomous Market Makers (AMMs) transformed decentralized finance (DeFi) by replacing traditional order books with smart contracts that automatically provide liquidity and execute trades. Platforms like Uniswap, Curve, Balancer, and many others proved that anyone can become a liquidity provider while enabling permissionless trading around the clock.

However, the next generation of AMMs is poised to become far more intelligent than today’s liquidity pools. Rather than simply following fixed mathematical formulas, future AMMs will leverage artificial intelligence, real-time market data, programmable liquidity, and cross-chain infrastructure to optimize trading, reduce risks, and maximize capital efficiency.

The evolution of AMMs may redefine how liquidity functions across the entire digital economy.

From Passive Liquidity to Intelligent Liquidity

Today’s AMMs generally rely on predetermined algorithms such as the constant product formula (x × y = k). While revolutionary, these systems still face several limitations:

• Impermanent loss
• Capital inefficiency
• Fragmented liquidity
• Static fee structures
• Slow adaptation to market volatility

Future autonomous market makers will actively respond to market conditions instead of waiting for liquidity providers to manually adjust positions.

Imagine liquidity pools that automatically:

• Shift liquidity where trading demand is highest
• Modify trading fees during periods of volatility
• Rebalance portfolios continuously
• Hedge exposure against extreme market swings
• Allocate idle capital into yield-generating strategies

Liquidity becomes dynamic instead of passive.

AI-Powered Liquidity Management

Artificial intelligence will likely become one of the biggest upgrades for AMMs.

Machine learning models could analyze:

• Trading volume
• Historical volatility
• On-chain activity
• Wallet behavior
• Macroeconomic events
• Stablecoin flows
• Cross-chain liquidity movements

Using these insights, AMMs could predict liquidity demand before it happens.

Rather than reacting after volatility occurs, intelligent AMMs may reposition liquidity in anticipation of changing market conditions.

This could significantly reduce impermanent loss while improving execution quality for traders.

Cross-Chain Autonomous Liquidity

The blockchain ecosystem is no longer confined to a single network.

Assets now move between:

• Ethereum
• Solana
• Base
• Arbitrum
• Optimism
• Avalanche
• BNB Chain
• Sui
• Aptos

Future AMMs won’t be limited to one blockchain.

Instead, autonomous market makers will coordinate liquidity across multiple ecosystems simultaneously.

A single liquidity position could automatically migrate toward whichever blockchain currently offers:

• Higher trading volume
• Better yields
• Lower transaction costs
• Greater user demand

Liquidity becomes globally optimized rather than trapped on isolated chains.

Intent-Based Trading

Intent-based architecture is emerging as one of Web3’s most exciting innovations.

Instead of specifying every trading parameter, users simply express what outcome they want.

For example:

“Swap my USDC into ETH at the best possible price before tomorrow.”

An autonomous market maker can then:

• Search multiple DEXs
• Split orders
• Route across chains
• Minimize slippage
• Reduce gas fees
• Complete execution automatically

The user focuses on outcomes rather than execution mechanics.

Self-Optimizing Fee Models

Today’s AMMs often charge fixed trading fees.

Future systems could dynamically adjust fees based on:

• Market volatility
• Liquidity depth
• Trade size
• Arbitrage opportunities
• Network congestion

During periods of high volatility, fees may increase to better compensate liquidity providers.

During quieter periods, fees could decrease to attract more trading activity.

This creates a healthier balance between traders and liquidity providers.

Autonomous Risk Management

Risk management may eventually become fully automated.

Future AMMs could continuously monitor:

• Oracle anomalies
• Flash loan attacks
• Liquidity concentration
• Whale movements
• Smart contract risks
• Bridge vulnerabilities

If abnormal conditions are detected, liquidity parameters could automatically tighten or temporarily pause certain functions to reduce exposure.

This makes decentralized exchanges more resilient without requiring constant human intervention.

Tokenized Real-World Assets

As tokenized real-world assets (RWAs) continue to expand, AMMs will likely become the liquidity engine for:

• Tokenized Treasury bills
• Real estate
• Carbon credits
• Commodities
• Private credit
• Corporate bonds
• Tokenized equities

Autonomous liquidity systems will help price these assets more efficiently while maintaining deep, global liquidity around the clock.

Personalized Liquidity Strategies

Not every liquidity provider has the same goals.

Future AMMs may allow users to select AI-driven strategies tailored to their preferences, such as:

• Conservative income generation
• Low-volatility portfolios
• Aggressive yield optimization
• Stablecoin-focused liquidity
• Long-term asset accumulation

Instead of manually managing positions, users could delegate optimization to autonomous agents that continuously adjust strategies according to predefined risk preferences.

The Rise of Autonomous Financial Infrastructure

Eventually, autonomous market makers may evolve beyond decentralized exchanges.

They could become foundational infrastructure powering:

• Lending markets
• Stablecoin issuance
• Prediction markets
• Gaming economies
• Tokenized securities
• Machine-to-machine payments
• AI agent economies

As autonomous software agents begin conducting transactions on behalf of humans, intelligent AMMs could provide the liquidity layer that enables these machine-driven economies to function efficiently.

Challenges Ahead

Despite their promise, autonomous market makers still face significant hurdles:

• Ensuring AI decision-making remains transparent and auditable
• Protecting against manipulation of automated strategies
• Maintaining decentralization while increasing complexity
• Securing cross-chain infrastructure
• Navigating evolving regulatory frameworks
• Balancing automation with user control

Addressing these challenges will be essential to building trust and encouraging widespread adoption.

Climax

Autonomous Market Makers represent the next major evolution of decentralized finance. By combining AI, cross-chain interoperability, programmable liquidity, and automated risk management, they have the potential to make markets smarter, more efficient, and more accessible than ever before.

Rather than relying on static formulas alone, future AMMs will continuously learn, adapt, and optimize in real time. As blockchain ecosystems mature and financial activity becomes increasingly automated, these intelligent liquidity engines could serve as the backbone of a truly autonomous global financial system—one where capital flows seamlessly, markets respond instantly, and decentralized finance operates with unprecedented efficiency.

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The UK’s National Crime Agency (NCA) and City of London Police have secured prison sentences for two men they say were involved with the “Scattered Spider” hacking group, a cybercrime crew prosecutors link to ransomware and cryptocurrency extortion schemes across the UK and the United States.

According to an NCA press release, the men pleaded guilty at Woolwich Crown Court on June 22 and were sentenced to five years and six months on Thursday. Authorities say the case is part of broader efforts to dismantle financially motivated cyberattacks in which cryptocurrency often plays a central role.

Key takeaways

• Two men connected to Scattered Spider received five years and six months in prison after guilty pleas at Woolwich Crown Court.
• UK investigators linked the group to intrusion activity targeting London’s public transport network in September 2024.
• US prosecutors have associated Scattered Spider with collecting at least $115 million in crypto ransom payments from dozens of US companies.
• Prosecutors say earlier attacks included a Caesars Entertainment breach and a subsequent Bitcoin ransom payment.
• The US Department of Justice previously reported an FBI seizure of about $36 million tied to wallets linked to the group.

UK sentencing follows a high-profile transport network breach

The NCA and City of London Police stated that the two defendants were associated with Scattered Spider. Investigators have previously linked the group to an intrusion into London’s public transport network in September 2024, an incident reported to have produced losses and recovery costs totaling 29 million British pounds (about $38.9 million).

That alleged breach underscores why cybercrime attributed to Scattered Spider has drawn attention beyond typical corporate fraud: public-sector and critical services are often targeted because operational disruption can be immediate and expensive, even when organizations ultimately recover their systems.

US prosecutors tie the group to crypto extortion at scale

The UK case comes as US authorities describe Scattered Spider’s wider footprint. A September press release from the Department of Justice (DOJ) said US prosecutors linked the group to collecting $115 million in cryptocurrency ransom payments from at least 47 US companies.

In the same DOJ release, prosecutors also characterized the attacks as disruptive to a broad range of targets—including critical infrastructure and the federal court system—suggesting that Scattered Spider’s activity was not limited to isolated enterprises but extended to organizations with heightened operational and regulatory importance.

That pattern matters for crypto investors and exchange and compliance stakeholders as well, because extortion campaigns can drive recurring demand for laundering services and complicate efforts to trace stolen funds once ransoms are paid.

Earlier allegations include Caesars Entertainment ransom in Bitcoin

The DOJ press release also accused Scattered Spider of breaching Caesars Entertainment and stealing a large customer database in September 2023. In connection with that incident, prosecutors said Caesars paid a $15 million ransom in Bitcoin (BTC).

For readers tracking the intersection of ransomware and cryptocurrency payments, this detail reflects a recurring dynamic in extortion cases: victims may seek to move quickly to stop ongoing damage, while attackers often demand digital assets that are typically easier to move than traditional payment rails.

FBI action targeting Scattered Spider-linked crypto wallets

The DOJ’s September release further reported that, in July 2024, the FBI seized approximately $36 million worth of cryptocurrency from wallets said to be linked to Scattered Spider.

According to the DOJ, investigators tied the group to at least 120 computer network intrusions. The agency said it traced and seized digital assets connected to wallets allegedly controlled by group members as part of its investigation.

While the UK sentencing is focused on two individual defendants, the seizure case highlights how law enforcement actions often span multiple stages—identifying suspected actors, attributing intrusions, and then attempting to disrupt the money movement that fuels ransomware and related extortion.

Looking ahead, the key uncertainty is how these cases will translate into sustained disruption of Scattered Spider’s operational capabilities. Readers should watch for further announcements on additional arrests, more wallet-related seizures, and any follow-up reporting that clarifies the extent of responsibility for the reported London transport breach and other high-profile targets.

For bitcoin supporters, the reality that BTC is steadier than the Kospi is a notable victory. Still, the largest cryptocurrency remains twice as volatile and risky as the S&P 500 index, whose 30-day volatility index (VIX) sits below 20%. Perhaps the true milestone for bitcoin bulls will be the day when the VIX becomes more expensive than the BVIV.

In the meantime, bitcoin’s price remains under pressure, trading below its widely followed 50-day moving average, though there is a glimmer of optimism. According to analytics firm Nansen, the wallets that typically move first and in the largest size during geopolitical flare-ups have not meaningfully shifted into stablecoins.

“This is consistent with prior Middle East flare-ups: Short-term leveraged longs get flushed, and then accumulation resumes,” Nicolai Sondergaard, a research analyst at Nansen, said in an email.

Other market observers are urging a focus on the forthcoming hearings in Washington D.C.

“The Clarity Act faces what could be its final test today, the industry insisting its gets done while the bill snags on Trump conflict of interest provisions and fresh Senate hurdles before the August recess. This is the regulatory clarity the institutional bid has been waiting for,” analysts at Marex said.

The United Kingdom National Crime Agency (NCA) and City of London Police said two men associated with the “Scattered Spider” hacking group were sentenced to five years and six months in prison.

The two pleaded guilty during their first court appearance at Woolwich Crown Court on June 22 and were sentenced on Thursday, according to a press release from the NCA.

British authorities said the pair were part of the Scattered Spider cybercrime group, which investigators have linked to high-profile ransomware and cryptocurrency extortion attacks targeting companies in the UK and the US.

The hacking group was linked to the infiltration of London’s public transport network in September 2024, leading to a reported 29 million British pounds ($38.9 million) in losses and recovery costs.

US prosecutors linked the Scattered Spider group to collecting $115 million in crypto ransom payments from at least 47 US companies, according to a September press release from the Department of Justice (DOJ).

The group was also accused of breaching Caesars Entertainment and stealing a large customer database in September 2023, prompting the company to pay a $15 million ransom in Bitcoin (BTC).

US prosecutors said the group’s attacks disrupted businesses and organizations nationwide, including critical infrastructure and the federal court system.

Source: Dark Web Informer

Related: MacOS malware hijacks Telegram sessions, targets crypto wallets: SlowMist

FBI seized $36 million from Scattered Spider-linked wallets

In July 2024, the FBI seized about $36 million worth of cryptocurrency from Scattered Spider-linked wallets, according to the DOJ’s September release.

According to the DOJ, investigators linked the group to at least 120 computer network intrusions. It said the FBI traced and seized digital assets tied to wallets allegedly controlled by members of the group as part of its investigation.

“These malicious attacks caused widespread disruption to US businesses and organizations, including critical infrastructure and the federal court system, highlighting the significant and growing threat posed by brazen cybercriminals,” said Matthew Galeotti, then acting assistant attorney general of the Justice Department’s Criminal Division.

Magazine: Does Botanix’s failure prove Bitcoiners don’t care about DeFi?

“We are seeing the same setup now. If history repeats, ETH could be gearing up for one of its biggest runs yet,” the analyst concluded.

Europe’s MiCA licensing pipeline added 14 more crypto-asset service providers to ESMA’s interim Markets in Crypto-Assets (MiCA) register in the second post-deadline update, bringing momentum down from the larger first wave after the transitional period ended.

According to an ESMA update published on Thursday, the total number of licensed crypto-asset service providers (CASPs) now stands at 294. The latest entries include Ripple Payments Europe (Ripple’s European payments business), Bison Bank based in Portugal, and Croatia’s state-owned Hrvatska poštanska banka (HPB).

Key takeaways

• ESMA added 14 CASPs in the latest MiCA register update, taking the licensed total to 294.
• Banking groups are prominent among new entrants, including institutions from Germany, Portugal, and Croatia.
• EMT and ART registers did not change: 21 EMT issuers remain unchanged, and ART still lists no approved issuers.
• ESMA also expanded its non-compliant list by two entities after actions by Italy’s CONSOB.

MiCA register slows after an initial surge

ESMA’s latest expansion arrives after a more aggressive update on July 3, when the regulator added 37 CASPs in its first major post-deadline roll-out following the end of MiCA’s transitional period. The difference in scale—37 entries the first time versus 14 this update—suggests a shift from the fastest initial licensing push into a steadier, slower cadence.

Still, the register’s upward trajectory remains important for firms planning market entry. For investors and market participants, the register functions as an on-the-record signal of which providers are operating under MiCA’s licensing umbrella, rather than relying only on voluntary or transitional arrangements.

Banks and payment providers extend regulated crypto services

The newest CASP entries underscore how established financial institutions continue to embed crypto services within regulated frameworks. Alongside Ripple Payments Europe and the banks already named, ESMA’s update includes German cooperative banks Volksbank Schwarzwald-Donau-Neckar and Raiffeisenbank Auerbach-Freihung.

ESMA also listed Kaiser Partner Privatbank, a Liechtenstein-based private banking group, further expanding the footprint of wealth and private banking providers offering crypto-related services under MiCA.

The latest additions build on a broader pattern already visible in ESMA’s interim register, which includes dozens of traditional finance firms—such as Spain’s BBVA and CaixaBank, Germany’s Commerzbank, France’s CACEIS Bank, and Standard Chartered Luxembourg.

EMT and ART issuance remains largely static

While CASP licensing activity continues to progress, ESMA reported no changes to two token-specific registers that track stable-value and reference-asset products.

For electronic money tokens (EMTs)—crypto-assets designed to maintain a stable value against a single official currency—ESMA’s register remains at 21 unique issuers. For asset-referenced tokens (ARTs), which are designed to track multiple assets such as currencies or commodities, the register continues to show no approved issuers.

That divergence matters because it points to uneven readiness across MiCA’s product categories. CASPs can continue onboarding under MiCA’s service rules, while token issuance—particularly ARTs—appears to be moving at a slower pace.

Non-compliant register adds two entities

Separately from the licensed CASP framework, ESMA also updated its non-compliant register by adding Reversal Investment Group and Kortex.

ESMA said the additions followed enforcement actions by Italy’s securities regulator, the Commissione Nazionale per le Società e la Borsa (CONSOB). With these additions, the non-compliant list now totals 164 entries, including crypto exchange MEXC.

For market participants, non-compliant listings are a caution flag: they indicate entities that ESMA deems to be outside MiCA’s compliance expectations. Traders and users looking for regulatory clarity typically treat the contrast between the licensed register and the non-compliant register as a practical guide for due diligence.

What to watch next

With ESMA’s CASP register continuing to climb—while EMT and especially ART approvals remain comparatively constrained—investors should watch whether token issuance accelerates in the next updates and how quickly the gap between service-provider licensing and token product approvals narrows under MiCA.