How Does the Execution Risk in a Mempool-Based DEX Differ from a CLOB-based Options Exchange? ⎊ Path

How Does the Execution Risk in a Mempool-Based DEX Differ from a CLOB-based Options Exchange?

Mempool-based DEX execution risk is primarily centered on front-running and MEV, where transaction ordering can be manipulated, leading to poor execution prices (slippage). CLOB-based exchange execution risk is primarily centered on counterparty risk (though mitigated by the Clearing House) and system risk (e.g. flash crashes, technical outages).

The decentralized nature of the Mempool introduces unique ordering and transparency risks not present in the centralized CLOB.

What Is “Miner Extractable Value” (MEV) and How Is It Related to Front-Running?

What Is Maximal Extractable Value (MEV) and Its Relation to Front-Running?

What Is the Difference between Front-Running in CEXs and DEXs?

How Does the “Front-Running” Issue Manifest Differently in AMMs versus CLOBs?

How Does “Maximal Extractable Value” (MEV) Relate to Front-Running in DEX Transactions?

Can Flashbots Prevent All Forms of MEV, or Only Front-Running?

How Does Miner Extractable Value (MEV) Relate to Front-Running in Decentralized Finance (DeFi)?

How Does the Risk of “Front-Running” Differ between LOBs and AMMs?