Watching a UI to see the order book flash on the right and update every 400ms is just magical
It looks and feels *identical* to a CEX, but underneath, it's a censorship resistant DEX
Welcome to the future
0:07
26.6K views
36
71
356
Conversation
How does Serum combat front running? Isn’t Solana only a handful of servers?
1
Over 100 validators live on main net today, see solanabeach.io
Block times are 400ms so opportunities for front running are low
2
3
Hmm but fundamentally that’s the problem of an order book on Dex. The validators always have a first look at the market. It’s MEV in a much bigger way than the AMMs
1
1
400ms and everything makes the next block means MEV is < 10% of Ethereum's. It's tiny.
Why is it a bigger problem on order books than AMMs?
7
1
5
How does a quicker block time mean less extractable value?
2
All of this isn’t to diminish your accomplishment. Amazing work, cool UI and great go to market. Perfect is impossible. Order books are long term bad design as the space gets more advanced. AMMs were a great first step and we need more innovation.
1
Are you saying the long term winners will be AMMs instead of order book Dex?
1
1
Long term I think we'll need some new kind of encryption to re-enable order books. There's been some interesting work with time-enabled encryption (decryptable after a certain amount of time). Gnosis has some interesting stuff around multi-asset auctions, reducing frontrunning.
2
Imagine going to a trader on wallstreet and asking them to trade on your platform but tell them that everytime they place an order someone else can adjust the entire market in real time before applying the order. That's the current state of DEX orderbook.
2
The difference with AMMs is the deposit of the liquidity happening in the past and the expected slippage being in the 1% range. The more I think about this - it's interesting Nakamoto consensus actually offers some protection because the next miner can see what I did change it.
1
the next miner can only change it if they're willing to give up a 50% chance of getting the block -- and then why wouldn't *they* then try to take that same MEV?
1
1
1
Show replies