In Options Trading, How Is “Gamma Risk” Analogous to the Rebalancing Effect in an AMM?

Gamma measures the rate of change of an option's delta. High gamma means delta changes rapidly as the underlying price moves.

This forces a market maker to constantly re-hedge their position, similar to how the AMM's constant product formula forces the pool to constantly rebalance its token ratio in response to price changes. Both represent a cost or risk associated with rapid price movement.