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.
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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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So now I'm confused where you're coming from. I apologize if I'm sounding negative on Serum... I don't think "perfect" is the standard we should hold DEX to right now and you've built a nice product.
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it's clear that order book on DEX is not a long term strategy. it only works because the industry is new and altruistic. If you could pause trades on the nasdaq, insert whatever you want and remove whatever you want... you'd either be a trillionaire or no one would use nasdaa.
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so my point was that it's waaaaaaaay better than ETH-based AMMs on this front.
I agree it's something like 0.25bps worse than perfect here, and that makes it hard to have trades good by less than that on it for now.
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but even if you accept that it can never get better (which isn't true), that still allows for something like half of all effective volume to trade on it, which is pretty good!
I definitely think it can get better - we'll need new kinds of encryption or a new way of thinking about trades. I think I disagree that a market with a built-in backdoor can work in the medium term. All of this is great experimentation and drives the market forward!
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