What Is the Key Difference between a CEX and a DEX Order Book Model?

A CEX uses a traditional, centralized limit order book (CLOB) model where all buy and sell orders are matched by a central server. A DEX, particularly an AMM-based one, uses a liquidity pool model where assets are swapped against the pool based on a mathematical formula.

The CEX model provides greater control and speed but requires trust, while the DEX model is trustless but can suffer from high slippage in low-liquidity pairs.