The core insight behind Clipper's design is that, counterintuitively, more liquidity can be bad for retail traders. In general, Most AMMs want as much liquidity as possible because it means less slippage. But after a certain point, more liquidity doesn't have any material benefit for small trades; it only continues to reduce slippage on large trades. Put another way, the slippage on a $1,000 trade is virtually the same with a $100m pool and a $1b pool. Even worse, more liquidity can be counterproductive! That's because the more liquidity in an AMM, the more the AMM needs to charge traders in fees to attract such large amounts of liquidity. This ends up better for large traders, but will make for worse prices for smaller trades. Consequently, on most AMMs retail traders are subsidizing whales!