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Decentralized exchanges don't use an order book, they are Automatic Market Makers (AMM's) that use a bonding curve instead. They don't rely on centralized excha
by TimJRobinson 4y ago
Decentralized exchanges don't use an order book, they are Automatic Market Makers (AMM's) that use a bonding curve instead. They don't rely on centralized exchanges at all.
There is a lot of arbitragers on all chains equalizing prices between them all. What you've described with office space is known as MEV in the DeFi world.
All the exchanges are completely open source, you can learn how they work if you put the time into it. I recommend the Balancer whitepaper.
If you can figure out how they can go wrong feel free to explain. But it seems you don't actually understand them yet and are just making assumptions.
Your belief that we need centralized exchanges is just an opinion, and it's wrong, which you'll discover as you dive deeper into seeing how they work.