How Does Market Depth on a CEX Compare to Liquidity on a DEX?
Market depth on a CEX, defined by the volume of buy and sell orders at various price levels in the order book, is typically much greater than the liquidity in a DEX's AMM pool for major assets. This means a much larger trade is required to cause significant price slippage on a CEX, making its price feed inherently more robust against large-scale, short-term manipulation.