What makes on-chain order books different from AMMs?
On-chain order books mirror centralized exchange mechanics but operate entirely on the blockchain. Traders place bids and asks directly in smart contracts, allowing more control over pricing and execution. However, on-chain order books require high throughput and low latency, which is challenging on many L1 networks. AMMs, by comparison, remove the order book entirely and instead rely on liquidity pools to execute trades automatically. Order-book DEXs often deploy on high-performance L2s or app-specific chains to achieve the responsiveness necessary for professional trading strategies.
Click here to explore: https://www.blockchainappfactory.com/decentralized-exchange-development
Howdy, Stranger!