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

Order book matches specific orders; AMM uses a liquidity pool and an algorithm for instant, pool-based execution.
Greeks.Live05.11.25

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

An order book DEX mimics traditional exchanges, using a smart contract to match buy and sell orders submitted by users, requiring liquidity at specific prices. An AMM-based DEX, conversely, uses a smart contract-managed liquidity pool and an algorithmic formula to determine asset prices and execute trades instantly against the pool.

The AMM model is more capital-efficient and simplifies the trading experience.

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