Content
@
0 reply
0 recast
0 reaction
Haardik
@haardikkk
AMMs: - better UI/UX - largest trading volume - available everywhere - actually decentralized - nicely composable - crypto native - not wintermute why do you think CLOBs are still better?
10 replies
2 recasts
15 reactions
Thomas Humphreys
@so
AMMs are second class citizens. We are already moving towards RFQs which are just market-makers quoting from clobs
2 replies
0 recast
1 reaction
Haardik
@haardikkk
Question is more so in what ways is that better?
1 reply
0 recast
0 reaction
Thomas Humphreys
@so
amms < clobs: - decentralized on smart contract level; client/rpc is still centralized - arbitrage paradise for mms (wintermute) - big UI/UX learning curve (bad slippage = sandwich, arb, front/back run) - less liquid than clobs - fees suck clobs are the backbone of defi. that said, I'm bullish on rfqs.
2 replies
0 recast
2 reactions
Haardik
@haardikkk
Arbitrage paradise (LVR) has several solutions being implemented right now MEV attacks mostly prevalent on L1 only Decentralized liquidity instead of outsourcing everything to wintermute Fees fairly configurable, top pools have very low fees usually Ideologically how are offchain matchers with large MMs any different from just using robinhood for your trades?
1 reply
0 recast
1 reaction
Thomas Humphreys
@so
"several solutions being impl right now" – that's fair, but the problem is still prevalent and a current arg towards inferiority you'll be surprised by how much of that amm liquidity are by market makers hedging on clobs or options or yield farming rewards (otc). amm fees will never be better than clobs: 5 eth -> arb is 25 bps fee + 68 bps price impact vs binance 10 bps fee. re: off-chain matchers. MMs have an edge on pricing that no one else has. they can negotiate fees on exchanges (significantly more) and have tech to spread your trade across their matching engine.
2 replies
0 recast
1 reaction
Haardik
@haardikkk
I appreciate this response I think there’s new AMM developments happening right now that solves the liquidity problems you’re talking about, and I’m confident the fee issue will also be solved as a side effect But they’re not here yet which is fair. On that note though CLOBs are also relatively new and only account for a small % of volume today - so we should be seeing more data on both a few months down the line
1 reply
0 recast
1 reaction
Thomas Humphreys
@so
https://en.wikipedia.org/wiki/Central_limit_order_book
1 reply
0 recast
0 reaction
Haardik
@haardikkk
Hahah I know the general idea of CLOBs has been around forever I meant onchain CLOBs are newer
1 reply
0 recast
0 reaction
Thomas Humphreys
@so
wait wtf is an onchain clob?
1 reply
0 recast
0 reaction
