AMMs are always self-sufficient. It only takes one person to contribute "some" liquidity and the pool will operate. But more liquidity makes it more useful and therefore likely to be used more, and more usage may attract more liquidity (i.e. virtuous circle), so I see a situation where what I am calling a marketing expense of bootstrapping it may make sense, similar to listing on exchanges.
As I noted elsewhere, I have no opinion on this particular AMM nor the platform on which it is operating.
I think an AMM in L1, probably integrated with the internal market, would be a nice feature, but not critical. I'd probably support paying to develop it but not necessarily prioritizing.