>it would earn a profit, that's not really the issue, is it?
yes, that's precisely the issue because that means it would definitely get built and would definitely operate.
>The issue is mevil i.e. could miner make more money, "stealing" from users. Do you agree?
Yes, but MEVil is not an issue if the AMM is not profitable enough to operate.
interesting, we need to discuss this more first then :)
the AMM can be easily profitable by simply taking a cut on each trade, then competition will make the amount of this cut just enough so that the operator makes a small profit no?
Even if this AMM is less economically efficient than the same one on Ethereum, nothing will stop users to use it if they want to, knowingly or not that they are not using the most efficient tool.
That's why I say that profit is not an issue per se, only mevil is.
For me this is like saying operating a Lightning node in a profitable way is an issue. It is not, because miners can't extract MEV from LN txs.
>nothing will stop users from using it if they want to
The key question is, will they want to?
Even if the AMM takes a cut of every trade, if there are no traders, then the cost of building the thing in the first place will outweigh the revenue.
