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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.

What Is an Automated Market Maker (AMM) in the Context of a DEX?
How Does the Depth of the Order Book Influence the Impact of a Flash Crash?
How Does a Constant Product Formula (X Y=k) Govern the Price in a DEX Smart Contract?
What Is an Automated Market Maker (AMM) and How Does It Differ from a Traditional Order Book?