All of this isnβt 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.
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Are you saying the long term winners will be AMMs instead of order book Dex?
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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.
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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.
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On an orderbook based DEX I don't need capital, I just need to be the leader of the block or know the leader of the block.
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Maybe on Ethereum this is a problem, but on Solana with very cheap gas speeds and blazing tps?
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Itβs actually the reverse. The speed and leader based approach make it easier to know youβll succeed. And the leader isnβt malicious protocol wise. Flash Boys 2.0 details this.
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faster block times --> less time you can "see into the futures" --> less to gain from ordering
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On an orderbook it's "infinite" though. Time stops and lets you make buyers buy from you and sellers sell to you in any pattern you want at the middle line. If Nasdaq offered you that access you'd pay a trillion dollars.
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I'm pretty confused here. How is this different than ETH AMMs except much less bad because you have less time to see what markets do?
Is your claim that the miners, if there happen to be both buys and sells in the same block *and* the orderbook isn't tick-wide, could provide to both, thus tightening up the book and giving the customer better execution?
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I'm not "claiming" anything - I know you're familiar with "Flash Boys" (1 and 2). DEX order book is as if the high speed fiber optic line could *also* pause trading and let the person insert any buy or sell order they want *and* remove any competition.
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