What Is the Difference between an AMM and an Order Book DEX? ▴ Learn

What Is the Difference between an AMM and an Order Book DEX?

An Automated Market Maker (AMM) DEX uses liquidity pools and a mathematical formula to determine asset prices and execute trades, eliminating the need for traditional buyers and sellers. An order book DEX functions like a traditional exchange, matching buy and sell limit orders from traders, which requires active market makers to provide liquidity.

What Is the Difference between an AMM and a Central Limit Order Book (CLOB)?

What Is the Difference between an Order Book and a Liquidity Pool?

How Does a Decentralized Exchange (DEX) Differ from a Centralized Exchange (CEX) in Terms of Liquidity Provision?

What Is the Difference between Price-Time Priority and Pro-Rata Order Matching?