Automated Order Books Eliminate DeFi Costs and Match CEX Capacity

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Decentralized finance (Challenge) continues to reach all-time highs, with daily trading volume increasing steadily. Unfortunately, despite the billions of funds currently traded, decentralized exchanges (DEXs) are filled with both visible and invisible costs that hamper market activity.

Therefore, the future of DeFi requires eliminate high transaction costs and limited features often associated with traditional DEX. Among them is sliding, the price difference between the quoted price of a cryptocurrency and the price actually paid by the merchant. This adds to the limited liquidity, the high cost of gas, lack of control over the execution price and the risk of front-run, that is the fact of malicious traders placing a transaction before a trader on the basis of a privileged knowledge of their future transaction. Solving these problems means that DeFi could reach parity with centralized exchange (CEX), while eliminating the need for intermediaries.

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