1) Reconstruction of the order book (AMM)
On the original decentralized exchange of our ONEROOT DEX, users still need an order book, and every transaction requires users to bid for this, and the counterparty can participate in it. Automated market makers can do without the order book. , Determine the transaction price of assets through algorithmic equations and act as the user's counterparty.
DEX often faces the problem of insufficient liquidity at the beginning of the startup, and the automatic market maker platform uses an algorithm to provide the depth of transaction flow. This means that the price of the asset in the automatic market maker product will only change when a transaction occurs. Less subject to external manipulation. For assets such as Ethereum, they are still listed on centralized exchanges, and sometimes the price will be different from the exchange price. In this case, there will be room for arbitrage. The participation of arbitrageurs will reduce the spread and return the token price to normal levels.
2) Oracle business logic settings
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