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Orderbook DEXes

Traditional orderbook trading process for swapping tokens. In addition to the traditional order matching, most orderbook DEXes will also search for opportunities for orders to be settled on AMM DEXes.

Principles​

Orders are signed (cryptographically committed) by the user and distributed across a network of counter-parties. The order is comitted on-chain once a counter-party is found. Orders have to be matched off-chain due to gas costs of settlement.

Benefits​

Intuitive swap model based on historical precedent; Able to set target prices; Less slippage risks

Protocols​

  • 0x
  • Loopring
  • Serum

Questions​

What is the most important question this topic raises that current discourse tends to avoid or understate?

  • Which assumption in the standard framing of this topic is most likely to be wrong in a 5-year horizon?
  • How does the DePIN or agent-native lens change what matters most about this topic?
  • Which first principle, if violated, would make the analysis of this topic fundamentally incorrect?