Market making, at least in stocks, is already very well-automated. They are extremely efficient businesses; they need to, because they take million-dollar risks just in hope to make a few hundred bucks each time, and pay a lot of that in costs.
By EMH there's no such thing as free lunch or true passive income. This is especially true in trading. Profit-seeking activities with low barrier-of-entry eventually become races to the bottom. If there's easy money to be made with passive AMM, people will jump into it en masse and eventually compete on cost-saving. Much like mining, where electricity costs and how quickly you can fix mining rigs with few resources could make and break a farm.
By EMH there's no such thing as free lunch or true passive income. This is especially true in trading. Profit-seeking activities with low barrier-of-entry eventually become races to the bottom. If there's easy money to be made with passive AMM, people will jump into it en masse and eventually compete on cost-saving. Much like mining, where electricity costs and how quickly you can fix mining rigs with few resources could make and break a farm.