What Are the Key Differences between an Order Book DEX and an AMM DEX for Options Trading?
An order book DEX uses a traditional system where buyers and sellers post limit orders, and the smart contract matches them. It offers precise pricing but requires active market makers.
An AMM DEX uses a formula and a liquidity pool, where options are bought or sold against the pool. AMMs offer continuous liquidity but may suffer from higher slippage and less precise pricing, especially for complex options.