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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Itโs actually the reverse. The speed and leader based approach make it easier to know youโll succeed. And the leader isnโt 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?
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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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Flash Boys was marketing bullshit, everyone who knows their shit knows that. It was like a running joke on wall street -- how a few people tricked a country into using their exchange because of a just-so story they got a popular writer to tell.
So all those folks building fiber optic lines are just wasting money? I'm not sure where you're going.
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no, they were making a great marketing decision -- it didn't help market structure at all but it did convince a bunch of people to use their product
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