It comes at a critical strategic juncture between the Automated Market Maker (AMM) model and the On-Chain Orderbook model.
The advantages of both models are clearly demonstrated through market data. Pioneering AMM exchanges like Uniswap manage approximately $5.8 billion in total assets under management (TVL),
It has recorded a cumulative trading volume of over $2.5 trillion. Meanwhile, next-generation on-chain order book exchanges such as dYdX and Hyperliquid are offering delivery services.
They dominate the centralized trading space, with trailing 24-hour trading volumes of approximately $2 billion and $1.2 billion, respectively, putting them at a level that rivals leading centralized exchanges (CEXs).
This was not a technical choice, but a philosophical decision that defined the overall product. With experience building blockchain and decentralized finance solutions, SRAI has chosen to combine two “schools” of approaches.
◆AMM: A revolution that democratized accessibility The AMM model pioneered by Uniswap democratized and revolutionized market-making capabilities. This design is particularly
Offering the revolutionary advantage of being "permissionless," Uniswap generates millions of trading pairs that centralized exchanges cannot match, and all new assets are
Instant market access is now possible. However, this simplicity comes with its own challenges. Due to the nature of algorithms, traders often face slippage and liquidity providers
◆On-chain order book: performance and professional experience In response to the need for a trading environment that requires higher accuracy,
The biggest advantage of this model is that it provides a professional trading experience, allowing users to utilize complex order types, and limit orders.
Platforms like dYdX v4 can process thousands of orders per second with less than 50 milliseconds of latency, eliminating the risk of sleepiness.
It boasts performance comparable to that of financial exchanges. However, putting order books on the blockchain requires extremely powerful infrastructure. Therefore, the most successful on-chain order books are
Leaderbook exchanges, such as dYdX's Cosmos SDK-based build, are using Layer 2 (Layer 2) to achieve high performance with near-zero transaction costs.
In many cases, it is built on a blockchain (likely a 2016 release) or a dedicated blockchain. ◆ Strategic Issue: There is no correct answer, only the optimal answer.
The choice between AMM and on-chain order books is a matter of targeting companies.
Projects that seek to build an open ecosystem and encourage participation from the community and new assets can realize their potential through the AMM model.
On the other hand, platforms aimed at professional traders and investment funds that require precision and complex tools can be solved with an on-chain order book architecture.
SRAI is not bound to a specific architecture. Based on our experience in successfully developing and deploying both models, we start by listening to the customer's vision and then find the optimal D
We provide a consulting process to select and build an EX architecture together. Since the selection of a DEX platform is a fundamental decision that determines the success or failure of a project, we consider both sides
Cooperating with a partner who has a deep understanding of blockchain technology will be a strategic advantage. SRAI is a technology company specializing in the blockchain field, providing comprehensive outsourcing and strategic solutions.
We provide consulting services, with a team of top engineers and experts to help businesses turn their innovative ideas into robust, secure and market-competitive blockchain solutions.
We are supporting them in turning their ideas into products.
2025/08/22 10:44 KST
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