A peer-to-peer (p2p) traded orderbook prevents LPs from suffering from impermanent loss, which is always possible with an AMM style DEX. This will also help the protocol and platform attract more institutional participants, helping bolster liquidity and reducing friction of the trading process by keeping bid-ask spreads relatively small. As we shoot for mass adoption the orderbook will also help the platform bridge the gap for non-crypto native users, allowing them to interact with other users in a manner that is similar to their regular trading experience on centralized platforms.
The protocol will provide a front-end interface for users to leverage Project Serum’s decentralized orderbook infrastructure that is built on the Solana blockchain. The transaction speed and low costs help keep the platform efficient.