Types of DEXs
Feb 2 2023
We will examine two types of decentralized exchanges:
Orderbook DEXs
AMM DEX
Orderbook DEXs resemble centralized exchanges (CEX) in their interface and operational principles. Trading participants place their orders to buy or sell their cryptoassets on the exchange, and a deal is reached when the stated prices match. The transaction takes place only when there is a counter order for a transaction from another user.
Unlike on a CEX, where the exchange itself serves as the third party and is responsible for processing a transaction, the smart contract, i.e. self-executing software, takes care of this.
AMM DEXs (automated market
