In decentralized finance (DeFi), two paradigms are prevalent in the market structure for exchanging crypto assets: Traditional central limit order books (CLOBs) and automated market makers (AMMs). Even though limit order books organize trading in traditional equities, futures, and currency exchanges worldwide, they have not been generally adopted in DeFi markets.

Decentralized finance (DeFi) has grown over the past two years at an unprecedented rate. However, today’s DeFi products often lag behind the standards of their counterparts in traditional finance (TradFi). In particular, trading on decentralized exchanges (DEXs) has to improve performance (e.g. trades per second) and user experience to close the gap with the traditional trading venues.

Looking forward, the potential of cryptocurrencies and blockchain technology is vast. The advent of decentralized finance (DeFi) and non-fungible tokens (NFTs) has already begun to reshape the landscape of finance and digital ownership, respectively. As technology advances and regulatory frameworks become more clear, we can expect to see further integration of cryptocurrencies into everyday financ