December 2024
Key Highlights
BitGW’s latest user survey shows that nearly half of respondents view participation in AMM liquidity pools on centralized exchanges as a key source of supplemental income. Meanwhile, around one-third of users also cite long-term financial security and independence as a key motivation for engaging with yield-generating products on the platform.
Within traditional financial systems, high fees, slow settlement times, and cross-border restrictions remain persistent challenges. In contrast, AMM liquidity pools operated within centralized exchanges combine automated market-making mechanisms with platform-level matching, risk management, and user experience optimization—offering users a more accessible, structured, and controllable way to participate in liquidity provision.
A majority of respondents believe that CEX-based AMM models lower entry barriers while improving financial accessibility, enabling users to participate in market liquidity and share in trading-related returns without navigating complex on-chain operations.
Why Users Choose BitGW’s AMM Liquidity Pools
As part of BitGW’s Real User Stories content initiative, the platform conducted a user survey to better understand the motivations behind participation in on-platform AMM liquidity pools.
Based on a sample of over 960 BitGW users, the survey results indicate:
- 47% cited earning additional income as their primary reason for participating in AMM pools
- 18% view AMM participation as a long-term portfolio allocation strategy
- 10% aim to offset inflation or market volatility through AMM-based returns
- 34% believe the recurring yield structure of AMMs supports long-term financial stability and independence
One BitGW user from the Middle East shared that amid persistently low traditional savings rates, they began reallocating assets into AMM products offered within centralized exchanges.
“Compared with on-chain participation, I prefer AMMs within an exchange environment. The process is clearer, risk controls are stronger, and it aligns better with my expectations for security and efficiency.”
How Platform-Based AMMs Address Traditional Finance Pain Points
More than one-third of respondents identified the following as major obstacles within traditional financial systems:
- High transaction and service fees (around 20%)
- Slow cross-border transfers and settlement delays (approximately 15%)
By operating within a unified exchange framework for clearing, matching, and risk control, BitGW’s centralized AMM liquidity pools allow users to participate in market liquidity without managing on-chain transactions directly, while earning a share of trading fee revenues under platform-defined rules.
A frequent cross-border traveler noted:
“Compared to traditional financial products, AMMs on a centralized platform are more efficient, and the source of returns is easier to understand—which matters a lot to me.”
Additional Key Findings (CEX AMM Context)
🔹 Financial Accessibility
- 74% of respondents believe CEX-based AMM models significantly lower barriers to financial participation
Key reasons include:
- Reduced reliance on traditional banking systems (20%)
- Clearer rules and more predictable return structures (17%)
- Platform-based access for underbanked users (18%)
- Simplified cross-border asset allocation (15%)
🔹 AMM Yield Objectives
- 22% use AMM returns to supplement primary income
- 24% allocate returns toward long-term goals (e.g., housing or savings)
- 20% reinvest AMM earnings into other platform products or digital assets
🔹 User Experience Level
- 58% have 1–5 years of digital asset experience
- 15% have over 5 years of experience
- 11% are relatively new market participants
About the Survey
This survey is based on feedback from over 960 registered BitGW users, collected between November 18 and December 8, 2024. Respondents span regions including Asia-Pacific, the Middle East, Europe, Africa, and Latin America, with a focus on user participation behavior within centralized exchange AMM liquidity pools.
